The Evolution of Online Casino Deposit Methods

Credit cards, wire transfer, digital wallets, crypto, eChecks, gift cards—these are some of the most popular payment methods at online casinos. Surprisingly, most of them didn’t exist two decades ago, or at least they didn’t process payments to gambling sites.

The history of online casino payments dates back to 1994, when the first online casino came out. Nearly everything in the casino sector has changed since then, from games to bonuses. How has the banking industry changed?

1994-2000: Wire Transfer and Credit Cards

The first decade of online gambling was characterized by two payment options: bank transfer and credit cards. Interestingly, Western Union invented both of these payment options—wire transfer (1872) and credit cards (1914).

Both payment options still operate to date. Wire transfer helps people transfer large amounts of money to and from online casinos seamlessly. But it comes at the cost of time—can take up to 10 days.

Credit/debit cards provide a more convenient payment method. Most gamblers own a credit/debit card, making it easy to make deposits and receive money. Cards are also faster than wire transfer and accepted at almost every online casino.

On the downside, card payments attract higher fees than alternative payment options. The fees come from banks and range from 2% to 5%.

2001-2010: Digital Wallets and eChecks

The 2000s brought about most digital wallets in existence today. PayPal launched in 2000. Skrill started a year later while its sister company, Neteller, came out in 2003. Over the years, more e-wallets have launched, from EcoPayz to Google Pay.

Digital wallets brought quicker speeds, lower fees and more convenience to casino players. In doing so, they grew rapidly to become the favorite way for people to bank at online casinos. In all fairness, e-wallets have been dominating the online payment industry for years.

Digital wallets have their shortcomings, but they differ from one company to the other. For example, PayPal charges 3% in fees yet some competitors have zero fees. On the flip side, Google Pay is available in a few countries only.

With that in mind, the 2000s was a decade of checks. You could send a check to a casino and hope they received it. Likewise, you could request for a check after you won money. Predictably, it took too long to bank with checks. Losses were rampant and accusations of fraud led to the demise of this payment option at casinos.

2011-2021: Mobile Banking

Mobile banking took of at the start of the last decade. Casinos launched apps on play stores. Software providers introduced mobile games while cash app slots became a thing. Speaking of which, Cash App launched in 2013 targeting mobile Internet users in the US and the UK.

Within a couple of years, there was an influx of mobile payment apps. Even digital wallets that traditionally operated through desktop websites introduced apps, from PayPal to Apple Pay. Fortunately, apps came to make things better for casino players.

You don’t need to own an expensive gaming machine to play poker and slots. You can create a mobile casino and bank through your favorite app. Another benefit of banking apps is that they brought about Pay by Phone.

Boku and Zimpler, in particular, allow casino players to gamble on credit and pay their debt through a monthly phone bill. It’s a revolutionary service never heard of before in the casino space.

Although you might feel tempted to overspend, the apps have a maximum amount you can deposit. The apps can increase your credit limit but you’ll need to prove you can afford it by playing regularly.

2009-2021: Cryptocurrencies

Bitcoin, the first cryptocurrency, launched in 2009 at a price of less than a dollar. Back then, it was a misunderstood payment method system popular with traders of the black market. Between 2011 and 2013, though, online casinos embraced it as a banking option.

In fact, a handful of online casinos launched with the pure goal of helping Bitcoin investors use their digital currency. Then altcoins like Ethereum and Dogecoin came out and more casinos supported the crypto industry.

Cryptocurrencies provide much lower fees than most e-wallets. They are faster, safe and supports limits of up to $1B. Get this—you can send and receive one billion dollars through Bitcoin for a few cents.

In 2021, Bitcoin hit a new record of $64,000 in April before crashing back to $30,000. It regained back and made a new record of $69,000 in November, but has been experienced a price correction again.

Bitcoin, and by extension, altcoins’ volatility, have been a matter of concern for its critics. However, there exist stable coins tethered to the US dollar. These coins don’t fluctuate, enabling you to pay with crypto without experiencing its volatile attribute.

2015 to 2021: EChecks and Gift Cards

Although no one wants to deposit money via paper check anymore, eChecks are growing popular. Casinos accept eChecks because banks provide assurance the recipient has to receive the money.

Electronic checks are faster, cheaper and convenient too. No need to worry that your check might get lost. After you request for a payout through an eCheck, you can expect it within a couple of days.

Electronic checks aside, gift cards are another new way of depositing money to casino sites. A growing number of online casinos accept Visa gift cards. So, if you need to give a friend who loves to gamble anything, consider sending them a gift card.

Crucially, you can receive a bonus even if you deposit through a gift card. This is important because not all payment options attract rewards. Skrill, Neteller and crypto might not earn you a bonus at some casinos.

Summary

Casino payment methods have been changing since the industry began. First, wire transfer and credit cards were all you could use. Then digital wallets launched and took dominance over the industry.

Over time, more payment options have partnered with casino sites, from mobile apps to cryptocurrencies. While there are many ways to deposit at casino sites, though, they all have their pros and cons. Learn the benefits and shortcomings before you pick a payment option.

This article does not necessarily reflect the opinions of the editors or the management of EconoTimes