E-Wallets Comparing between Skrill & Paypal

PayPal vs Skrill: Introduction

The PayPal vs Skrill comparison is different to the NETELLER vs Skrill comparisonSkrill (former Moneybookers) and PayPal aim for different customers in some parts of their e-wallet businesses and therefor offer different conditions.
Skrill vs PayPalMost important: PayPal does not provide most Poker, sports betting and online gambling rooms as merchants.
All data of the following PayPal vs Skrill comparison are updated whenever it is required.

PayPal vs Skrill: VIP programs

PayPal does not offer a VIP program like Skrill (Moneybookers) and NETELLER do. The information in bricks in the following fee comparison show the benefits of Skrill VIP members.
The required amount of sent transfers to merchants within 3 months to become and to maintain Skrill (Moneybookers) VIP status are:
bronze: 6,000 EUR; silver: 15,000 EUR; gold: 30,000 EUR; diamond: 90,000 EUR.

PayPal vs Skrill: Fee comparison

The fees at PayPal are very complicated and different for many cases. The following comparison provides information for personal usage with lower fees than the PayPal business accounts. Please check the anchored links to PayPal’s User Agreement in the following PayPal vs Skrill comparison for more information.
Skrill (VIP)
specific VIP conditions in (bricks) n/a (bronze; silver; gold; diamond)
Available accounts per customer 2 accounts
(1 personal + 1 business account)
1 account
(1;2;3;4 different currency accounts)
Available account currencies 25 40
One time Signup Bonus n/a 20 USD with eWallet-Optimizer.com
Account management fees free free
Account unused free unused for 12 months:
1 EUR/month
Exchange fees (FX) 2.5% 2.99-4.99% (2.49-3.49%; 2.25-3.25%; 1.99-2.99%; 1.75%)
p2p Money transfers Sender generally determines whether the sender or recipient pays the fee.
– send money (p2p) free 1%, max 10 EUR (1%, max 1 EUR)
– receive money Free for p2p in same country and currency by using bank or PayPal balance only.
By transferring money internationally, with different currencies or by using a credit card the fee is between
2.9% + 0.30 USD (from US to US account) and
7.4% + 0.50 USD (from US to Brazil account)
–> PayPal User Agreement #Receive Money
Deposit fees
– bank transfer free free
– instant bank deposit free free
– credit card between 2.90% + 0.30 USD and 7.40% + 0.50 USD 1.90% (1.25%; free; free; free)
Withdraw fees
– bank transfer free 2.95 EUR (2.95; free; free; free)
– cheque 1.50 USD 3.50 EUR
– prepaid card at the ATM 1.95 USD 1.80 EUR (free)
– to merchant site free (only available at few online gambling providers) free
PrePaid Card Skrill vs PayPal PrePaid MasterCard
PayPal PrePaid MasterCard

PayPal Skrill MasterCard
Skrill PrePaid MasterCard
– requirements to order customer for 60+ days with premier or business account customer with verified account
– fee to order free 10 EUR (free)
– membership 4.95 USD/month 10 EUR/year (free)
– costs for cash withdrawals at the ATM 1.00 USD + 2.5% FX fees
1% + 2.5% FX fees outside the US
1.80 EUR (free); FX fees as above
– ATM transaction decline fee 1.00 USD free
– costs at points of sale free free
– stop payment fee for preauthorized 10 USD free
– online bank statement free free
– new PIN free free
– new prepaid card 5.95 USD 10 EUR (free)
– cash withdrawal at ATM limits/24h 940 USD 250 EUR (250; 500; 2,500; 2,500)
– points of sale limits/24h 5,000 USD 1,000 EUR (3,000; 3,000; 5,000; 5,000)
– delivery time 2-4 weeks 5-10 business days
– available currencies EUR, USD EUR, USD, GBP, PLN
– validation 3 years 3 years
– more information PayPal PrePaid MasterCard: Cardholder Agreement Nov 2011
Skrill PrePaid MasterCard: Terms of Service
Cashback for merchants transfers n/a none (0.2% with Skrill Loyalty Club)
– promotions n/a 100 EUR bonus by becoming Skrill VIP
– additional bonus-programs
up to 0.5% additional bonus/month with eWallet-Optimizer.com
Security Token PayPal Security Key Skrill Security Token
– fee to order 29.95 USD 15 EUR (free)
– delivery time 3-5 business days
– battery life span 5-7 years
– Money-back guarantee in case of fraud yes for all Skrill customers using the Security Token
Link to Terms & Conditions PayPal Terms of Use Skrill Terms & Conditions
It is not possible to transfer funds between Skrill (Moneybookers) and PayPal directly.
Both eWallet providers do not offer any transfers with Bitcoins at the moment. However, PayPal announced to maybe implement Bitcoinsas well as other virtual currencies such as airlines miles.

PayPal vs Skrill: Development

Skrill (Moneybookers) was able to double their memberships to more than 35 million as well as their overall transfers to 55 billion EUR within last 2 years. Compared to PayPal with “128 million active registered accounts” and 110 billion EUR value of transactions in 2012, Skrill (Moneybookers) is still the much smaller competitor. But with a growing rate of around 20% PayPal grew slower than Skrill (Moneybookers) did with more than 50% last years.
Skrill (Moneybookers)was able to team up with biggest global players, such as Facebook, Skype and Ebay. Ebay acquired PayPal in 2002and is benefiting from their own e-wallet provider. PayPal revenues represented 40% of eBay Inc. revenues in 2012, showing the strength of that acquisition a decade ago.
PayPal will probably keep growing with a rate of 20% within the next years. Regarding much smaller fees for personal accounts, but especially for merchants, it will be interesting to see how Skrill (Moneybookers) will compete with PayPal having Ebay as the strongest supporting website. Aiming for the US market, especially the huge online gambling market could be a way for Skrill (Moneybookers) to outperform PayPal within the next 5-7 years.

PayPal vs Skrill: Conclusion

Pro PayPal:
  • Biggest eWallet provider:With the acquisition of Ebay PayPal became the best known and biggest e-wallet provider on the net. Because of this, most merchants accept the higher fees and offer PayPal as their payment service to be able to reach as many customers as possible.
  • Safety:
    With having an official bank status as Luxembourg-based bank, PayPal is a safe e-wallet provider.
Pro Skrill:
  • Usage for Online Gambling:
    PayPal is not offered by most online gambling providers while Skrill (Moneybookers) is the #1 in that segment.
  • Fees:
    Even though the fees in this PayPal vs Skrill comparison are provided for personal accounts and are much lower than those for business accounts at PayPal, it is easy to see the huge advantage of Skrill (Moneybookers) over PayPal when it comes to their fees. Especially the fees for receiving money and using the PrePaid Card cannot compete with those of Skrill (Moneybookers).
  • VIP Program:
    PayPal does not offer any VIP program, while Skrill is almost 100% free for any use with easy to reach Skrill VIP status.
  • Cashback:
    Beside the $20 sign up bonus for new customers, there are plenty of other bonuses and cashback available with eWallet-Optimizer. With the Skrill Loyalty Club and their cashback promotions, Skrill (Moneybookers) offers a good reward system with their own easy to use loyalty shop. PayPal does not offer any kind of cashback for sent transfers to merchants at all.
Most people have a PayPal account for smaller transfers or when they buy things at Ebay. But when it comes to bigger transactions, especially for online gamblers and Forex traders, Skrill (Moneybookers) is the way better option. The fees are not even comparable for these two eWallet providers.
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