Introduction to PayPal
The story of PayPal is to many intertwined with eBay, but contrary to popular belief the service was not created as a way to manage its payments from the beginning.
The genesis of PayPal was a software, developed by Peter Thiel and Max Levchin, named Fieldlink (later Cofinity) that first appeared on the PalmPilots and Personal Digital Assistants of the late 1990’s. In effect, Fieldlink was the first E-Wallet and soon people were able to email payments in US dollars to each other. By 1999, this was first known as PayPal.
By 2000, eBay begins to use PayPal in the USA as a means to process its payments and over one million people use it. Its success does not go unnoticed and Cofinity merges with carbon emission and space botherer Elon Musk’s X.com. And X.com is no more. PayPal (as it was and henceforth shall be known) was bought by eBay (finally) in 2002 for $1.5bn and in 2004 PayPal became available on UK eBay, further boosting revenues.
In a Nutshell
To sum up PayPal’s successes over the past two decades, refer to PayPal employee Damon Williams’ reverential primer:
“Since its launch in 1998, PayPal has grown faster than almost any other company in history in terms of both customer base and revenue. Over 100,00 people sign up for PayPal’s service every day, more than $1,000 goes through the PayPal financial engine every second, and thousands of individuals and businesses from across the globe come to PayPal looking for a solution to meet their online payment needs. PayPal is now available in over 100 countries and 17 currencies, with even broader expansion planned for the future. PayPal is the world’s fastest growing global currency exchange, and it is clear that PayPal is creating the new standard in online payments.”
In 2014/5, eBay span off PayPal into a separate business – a recognition of how far the lowly “eBay payment processing system” had come.
PayPal and Casinos
This history is a slightly spottier one. Firstly, unlike Neteller, PayPal has no real roots in the gambling industry. But, pre-2006, you could deposit money on various random US poker sites. However, when the Unlawful Internet Gambling Enforcement Act came into effect in 2006 that specifically targeted financial institutions, it became illegal to process off-shore gambling funds through the US.
Since then, PayPal pretty much pulled out of the US market, and this stance is enshrined in company policy:
“PayPal prohibits transactions for gambling activities by merchants and account holders in the US and any jurisdiction where gambling activities are illegal, and by merchants whose services are accessible to account holders in the US.
PayPal allows approved gambling merchants to use our service in certain jurisdictions where gambling activities are legal. To be approved by PayPal, merchants must demonstrate to PayPal’s satisfaction that they have the ability to block gambling activities for account holders in the US and any jurisdiction where gambling activities may be illegal.
Unless the merchant has been approved by PayPal, account holders may not use PayPal to send or receive payments for any form of gambling activities, including but not limited to payments for wagers, gambling debts, and gambling winnings, whether conducted online, in person, or through any other means of communication. Gambling includes placing, accepting, recording or registering bets; participating in lotteries; or otherwise carrying on a game of chance for money, property, or other things of value.”
What does it mean?
As can be easily deduced from the second paragraph, PayPal does not grant any old casino the right to utilise its wares. A comprehensive system of approval takes place to ensure the quality and integrity of the online casino. Hence, not every casino carries a PayPal option. Therefore, it follows that a casino just by virtue of offering a PayPal option is already a seal of approval on the casino itself. The chances of PayPal approving a disreputable casino are virtually none.
Suffice to say: the reasons people explicitly seek out PayPal offering casinos are both sound and multifaceted. Certainly something to consider when choosing your next casino.
How to use PayPal
Though PayPal may be a class above the other e-wallets in terms of profile and trust, the nuts and bolts function as any other e-wallet. Chances are you’ve already bought or sold something on eBay in your lifetime and therefore these three steps are moot. But:
Create an account. You’ll need to come up with a username (your email, perhaps) and a password that passes the strength test.
Then, fund the account with a credit or debit card, or a direct transfer from your bank. The money should come through instantly, and you’ll be ready to deposit at the casinos of your choice. When depositing or withdrawing at a casino, all you’ll need to plug in are your PayPal username and password. No account numbers or 16 digit codes are required. And this is the same at every casino that accepts PayPal.
Is PayPal for you?
Though we have probably mentioned all of these points in passing, there are 3 main reasons why using PayPalfor your online gaming is a good idea:
• For the marginally distrustful. When paying with PayPal, you’ll never have to give the casino your personal and intimate financial details. The casino never has access to your bank and credit card details. The only company that has access to that information is PayPal, the most trusted and internationally reputable online financial institution out there.
• PayPal prides itself on its security and your money’s safety. And as I’ve already mentioned, they don’t allow just any casino to make use of their services; only casinos that are proven to be legitimate.
• PayPal records every purchase and deposit that you make. They will email you when you make one and keep them all stored in your account. Therefore, it is an effective and centralised way to keep track of all your online casino finances. Check your deposits and withdrawals and budget accordingly.
PayPal is a sensible way to play. Find a PayPal Casino here.