PayPal is a popular and much-used payment provider for transactions on the Internet worldwide. This was no different in the area of online casinos and for a long time, the American e-wallet dominated as the most popular payment method in best online casinos PayPal [valid where legal].

However, after several lawsuits and complaints PayPal has decided not to accept any more payments from users on online gambling sites. Now this payment method is returning to the gambling business, but so far only the most reliable online casinos can provide this payment method. Therefore we will also show you which payment methods are particularly recommended as alternatives to PayPal for online casinos.

The best PayPal alternatives

Method Advantages Disadvantages
Credit cards
  • Available everywhere
  • Secure
  • Instant deposits
  • No payout with MasterCard
  • Long payout time with Visa
Sofort
  • Only bank account needed
  • Fast deposits
  • Bank data is transmitted
  • Slow payment reception
Neteller & Skrill
  • Secure payment method
  • Fast payment reception
  • Neteller does not have a banking license
  • Both providers in the same company
Trustly
  • TUV tested
  • Instant payments via Pay N Play
  • Secure
  • Second payment service needed to fund Trustly account
Cryptocurrencies
  • Anonymity provides more security
  • Bitcoin debit cards allow instant access to funds
  • Strong currency fluctuations
  • Untraceable payments – low player protection

Is the PayPal payment alternative?

PayPal is the world’s most successful online payment system – once created to handle cross-border transactions for the online auction house eBay. In the meantime, there is hardly any way around PayPal for the purchase of goods on the Internet.

Online merchants and customers worldwide trust this secure, fast and uncomplicated payment method. PayPal has become the market leader for payment without cash on the Internet. Therefore, it was obvious that online casinos also offer PayPal.

Popular PayPal payment method

PayPal has more than 80 million active customers in Europe and has been ranked as the second most popular online payment method in ECC Cologne’s annual payments survey for several years. This is complemented by a strong position on the merchant side: about 91 percent of the 1,000 largest online retailers in Europe offer PayPal as a payment method.

In 2022, the study revealed the following information:

  • 41.3% of the online shoppers surveyed prefer to pay by invoice.
  • 32 % of the online shoppers surveyed prefer to pay by PayPal.
  • 53 % of the online shoppers surveyed paid for their last order using their favorite method.
  • The online store operators surveyed offer an average of seven payment methods.
  • 77.7% of the online store operators surveyed offer PayPal as a payment method.
  • 77.3% of the online store operators surveyed offer prepayment as a payment method.

Political and legal turbulence

One of the reasons for the PayPal ban was the ambiguous legal situation, which has not yet been fully clarified.

The legal framework is defined by the state gambling treaty, which came into force in 2012. However, in 2017, the new State Gaming Compact failed.

As such, time is running out: the current State Gaming Compact expired on June 30, 2021. This means that online casinos are still not regulated by law. This is because the regulated market includes all offerings that are licensed to gamble and licensed under the law. This includes the offerings of state lottery companies, casinos and gaming halls. On the other hand, not regulated in Europe are gambling offerings that do not have a nationwide gaming license, even if they are licensed by another EU member state. These include primarily online casinos and online poker. Nevertheless, such offerings are tolerated and sometimes also publicly advertised – despite the existing “gray area”.

PayPal buyer protection not for online casinos

This was a retreat with announcement, because for some time PayPal no longer granted buyer protection for online casinos. This buyer protection is the decisive reason for the trust of users and the particular global success of the company. Because this service grants customers in online commerce protection against fraud.

However, many players took advantage of this buyer protection to avoid having to pay their losses. PayPal is also likely to have circumvented this verification effort by making changes to its terms and conditions.

The current position of the judiciary is clear: By banning online casinos, as well as transactions to them are not allowed. Conversely, this means that claims from online casinos and also from PayPal to customers are no longer legally enforceable – players had repeatedly taken advantage of the legal situation.

For honest players, all this is not a good development: After all, it is possible with PayPal to enable secure and extremely fast transactions – to the player’s account or his PayPal account. The payment method is also popular because sensitive data such as personal bank details are not forwarded.

Politicians are putting pressure on payment providers:

Payment provider banned from engaging in online gambling. In connection with illegal gambling, the Department of the Interior has for the first time banned a major payment service provider from doing business in connection with online casinos. This was revealed through press reports in mid-June 2021.

The provider is no longer allowed to arrange payments. The ministry did not name the company involved, but we can assume it is Sofort or Klarna.

By this they are sending a signal and suggest that the pressure on other payment service providers will now also increase to reorganize their business processes with regard to illegal gambling, if it has not already been done.

The best alternatives to PayPal payment

Credit cards: Comeback for the classic?

In addition to the big player PayPal, there are many other payment methods: As a classic, payment methods such as credit cards continue to be a good and viable payment option for players. People have credit cards anyway – for traveling or renting a car. They also act as an intermediary, so the online casinos do not know the player’s account details.

MasterCard and Visa credit cards are the most widely accepted worldwide. American Express cards, on the other hand, demand high fees from merchants.

A very important point concerns withdrawals: Because these can only be made by Visa. The reason is the different billing system. This means that no winnings can be paid out via MasterCard.

The duration until the payout depends on the respective online casino. Depending on the processing time of the withdrawal request, it can take between three and four days until the funds are credited. It can be assumed that the usual fees apply for transactions via credit cards.

Sofort: less recommendable

The real advantage of the transfer is that you do not need new and additional accounts or access. Because you simply work with what you already have: your own bank account. Nevertheless, for online casinos the wire transfer is a rather slow and not very modern method of money transfer.

The instant transfer, on the other hand, goes, as the name suggests, much more nimbly. Here, transactions take only a few seconds. It is therefore comparable to PayPal in terms of convenience and speed. On the negative side, however, is the lack of discretion. This is because instant transfers give the transaction partners the players’ bank details.


Instant transfers work by logging into your own online banking account via the online casino and making the transfer from there. However, there are also secure payment methods like Trustly, specifically designed for the challenges of internet commerce. Withdrawals, however, do not yet work for the most part or take four to five days.

Neteller and Skrill: originally created for gambling

Neteller works similarly to PayPal. The difference: The offer was primarily built for the gambling industry. Neteller also does not have a banking license. Skrill – actually a competing product – now belongs to the same company.

Neteller and Skrill are secure e-wallets. These are offers for purely digital transactions, so classic bank accounts are not relevant here. The speed of all transactions is really positive, but the fees are less pleasant. The account can be topped up in various ways: for example, by bank transfer and credit card. Not all deposit options are available in every country. Customers can then immediately use their deposited funds for payments to various merchants. In addition, NET+ is a virtual credit card that can be used wherever MasterCard can be used to make purchases. A new card number is generated for each individual transaction. This is supposed to provide more security. Withdrawals are possible at Neteller via this credit card and ATM withdrawal, but also via bank transfer.

Trustly: is it the future?

Trustly, a Swedish online payment provider is popular with online casinos. Trustly can be used across countries and currencies, and payments are processed securely, quickly and without fees. There is also a TÜV certification for guaranteed data protection since 2018. While Trustly is similar to an e-wallet, it works with its own infrastructure, such as the Trustly app. This allows customers to easily load money onto their cell phone, for example, and then transfer it to the online casino of their choice.

Or purchases can be made with Trustly via instant transfer without having to load time-consuming money onto the account first. Instead, the company handles the transaction directly and deducts the amount from the user’s bank account afterwards. The Pay N Play function for the fast and secure processing of deposits for online games could also make a good impression. The user does not even have to leave the website of the gaming platform via an interactive banner.

Cryptocurrencies – various risks

Digital currencies open up completely new worlds. Initially launched as a means of payment on the darknet, they have now arrived in the established economy and could perhaps actually be the currencies of the future. But only time will tell whether that will be the case. But one thing is clear for users: it is a completely different method and, moreover, a different currency.

Cyber money is a legal means of payment. Cryptocurrencies such as Bitcoin are based on so-called blockchain technology. They are generated decentrally worldwide by computers. But critics of cryptocurrencies see untraceable transaction routes, crimes such as money laundering or terrorist financing. These fears cannot be dismissed out of hand – but they existed and still exist without digital currencies.

Moreover, financial experts argue that cryptocurrencies are not a real currency, but rather a transaction currency, since they cannot serve as a store of value. The very enormous value fluctuations, i.e. volatility, of cryptocurrencies should also not be underestimated, with extreme swings upwards but also downwards. Such violent changes do not exist in other currencies. These fluctuations must be assessed as a major risk.

Bitcoin

The rapid rise of bitcoin in 2017 was followed by a deep fall. Currently, the value of Bitcoins is recovering. Nevertheless, strong fluctuations can always be assumed with cryptocurrencies.

Bitcoin is the most popular cryptocurrency

Bitcoin is the best-known means of payment of this kind and probably the term that people first associate with cryptocurrency or cyber money. Bitcoin behaves like normal money in general payment transactions. You need an e-wallet including special software and address as a virtual wallet in which the digital currency is stored.

Bitcoin is a completely independent currency, without any influence of banks, governmental or supranational bodies, furthermore independent from the course of other common currencies like Euro or Dollar. Thus, it is not possible to control the currency or set conditions: The Bitcoin network controls itself. Bitcoins are traded like securities – the price is determined by supply and demand.

So far, however, there are comparatively fewer acceptance points, a development that is changing rapidly. Many different companies now accept Bitcoin as a means of payment. Among them are renowned companies and organizations such as Microsoft or Dell, Edeka groceries, Expedia, Greenpeace, Wikipedia or Mozilla.

In general, Bitcoin is an uncomplicated way to send money worldwide anonymously, quickly, securely and without costs. The recipient only needs a Bitcoin address as well. Meanwhile, there are also Bitcoin debit cards. With these fee-based cards, users can make purchases online and in stores, paying with the Bitcoin balance.

Bitcoin is practical as a payment method for online casinos due to the pseudonymity and discretion. Basically, you can also deposit smaller amounts. And there are also only small fees due. The prerequisite is that one has previously bought Bitcoins and created a balance.

Besides Bitcoin, there are said to be over 4,500 other cryptocurrencies. Currently, Etherum is popular and tradable on various exchanges such as Bitpanda. However, the price trend over the last five years also shows tremendous volatility.

Conclusion: Even if the policy fails and thus narrows transaction channels for gamblers, eliminating PayPal as such, gamblers still have some alternatives. And once gambling reform takes effect, PayPal may once again become available at all online casinos, not just the most reliable ones.

Frequently Asked Questions (FAQ)

Are there still casinos with PayPal for players?

Yes, but unfortunately there are significantly fewer casinos with PayPal on the gambling market. Now the PayPal payment method is only offered by the most reliable casinos. However, in this article you will also find the best alternatives to PayPal.

Why is PayPal rarely offered at online casinos?

Due to the increasing number of PayPal chargebacks from players at online casinos, the payment service provider has decided not to process payments for a large number of online casinos anymore. Therefore, there are currently only a small number of reliable online casinos with PayPal for players.

What are the best e-wallets like PayPal?

PayPal is by far the most popular e-wallet, however, there are now several e-wallet alternatives in the online casino for players such as Skrill, Neteller or ecoPayz.

Why is Trustly often mentioned as an alternative for PayPal in the online casino?

Although Trustly is not an e-wallet in the true sense, the payment service provider is very popular for online casino players due to its fast and secure payment processing. With Trustly, you can pay online directly from your account without releasing any confidential data. A similar option is also the online casino payment with Klarna.

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