Skrill: An eWallet to Pay, Shop and Transfer Money
Skrill is a financial platform that offers payment, shopping and money transfer services. An Online Account with Skrill in essence works very similarly to a bank account allowing: (a) to receive money, (b) to transfer money for Free, in a fast and simple way, and (c) pay for products and services online. These types of accounts are called e-wallets or electronic wallets.
Skrill offers the following services: Online Shopping and Payments. Instant Money Transfers to almost every destination in the world [even to bank accounts] for free. Skrill is a platform widely used by those who operate, work, invest, bet or need to transfer money to bank account in different countries on a regular basis over the internet. Registration is free and is completed 100% online.
Use cases of a Skrill Account
But if the Skrill account works with almost all the features of a traditional bank account and I do have a traditional bank account ... Why do I need an Online account with a company like Skrill? This reasoning is valid, however, there are certain use cases that may be unique and can make life easier for a Skrill customer and their family environment. Below is a list [some] of these use cases, however, there are many more:
If you live in a country that has some sort of capital restrictions, or where international bank transfers are extremely expensive.
If two family members have Skrill accounts, and one of them goes on holidays and suffers a sudden accident and requires money quickly, the other family member can send money online instantly.
If you require an account in a different currency offered by the local bank. Skrill allows accounts in US Dollars, Euros, Pounds Sterling, among many others.
If you need to send money to your relatives living in a foreign country on a regular basis.
If a cryptocurrency trader needs to regularly deposit and withdraw funds from his trading account.
If you make regular online purchases, Skrill is a much safer option than a traditional bank account, because being it in essence a prepaid account, in the event that the website where the purchase is being made is a scam or their intention is to steal credit card data, the customer is only exposed with the balance available on the Skrill account.
How does Skrill work?
As mentioned before, a Skrill account works similarly to the online banking app of any traditional bank. That is, it offers a view of the cash balance, transactions, money transfer options, etc. The only difference is that Skrill is an online financial institution, that is, it does not have physical branches to go to, for example, deposit cash. It is basically an app on the phone which has been designed to offer payment solutions and money transfers to almost everyone in the world at a very low cost compared to traditional banking. In general terms, the operation of a Skrill works as follows:
Download Skrill's App on the phone. Skrill will request personal information to open the account.
Deposit Money. Skrill allows deposits with Credit Cards, bank transfers but also via other payment processors such as Neteller, Paysafe, or even with Bitcoin.
Receive money from other Skrill accounts or online services (Trading Platforms, Casinos, Payment Services, Shopping) that allow Skrill transfers. Other people or online company are able to transfer money to the Skrill account in a simple and almost instantaneous way.
Make Payments and Purchases. Through Skrill Rapid Transfer, which works as an online account and can be used for online purchases.
Low Cost transfers. Once the account has been funded, very low-cost local and international transfers can be made, some transfers are free, depending on where the money is being transferred to. For this reason, it is a service widely used by expats to manage money.
Skrill Prepaid Mastercard
Skrill clients can enjoy instant access to their account's balance with a Skrill Prepaid Mastercard®. Cards are received within 7-10 days allowing clients to pay online and in store wherever Mastercard is accepted. Also allows Skrill's clients to withdraw funds at ATMs worldwide.
Transactions between Skrill accounts are instantaneous, that is, if two users have a Skrill account and one transfers money to the other, the latter has it available to spend or withdraw instantly.
Transactions between Skrill accounts are free.
Transfers to some Bank accounts are free.
Receiving money from a massive list of vendors is free.
Skrill and its regulation ... Is it safe to operate with this eWallet?
Skrill is a platform owned and operated the Paysafe Group, a global company. Founded in 2001 as Moneybookers, the firm is based in London and has offices in several European countries and in the US. The change of brand to Skrill was made on 2010. As mentioned in the first paragraph, Skrill is not a Bank and does not lend customer funds. The firm is subject to the regulation of electronic money and payment instruments of the British Financial Conduct Authority (FCA), UK's regulatory entity for financial services.
An important aspect to know is that Skrill is obliged to keep its clients' funds in separate company accounts, and must keep enough money to pay all the balances of all the clients at the same time (a rule that a traditional Bank could never comply with). The UK's FCA is one of the strictest regulatory entities in the world, which is why it is very safe to deposit, transfer and hold money in a Skrill account.
Opening a Skrill account
Opening an account with Skrill is a process that is carried out 100% online. It only requires an ID (Passport or Identity Card) and a proof of address which are scanned through the platform. Skrill takes only a few moments to open the account, and allows the customer to log in from any device and deposit funds using the methods described in the following section.
Skrill's fees and depositing methods
Skrill is a company that is dedicated to payments and transfers, which is why its fees and commissions are basically linked to money transfers. When depositing with any of the following methods, Skrill charges 2.5% of the total deposited amount (for clients in Spain and the rest of the European Union it's 1%):
American Express Cards
Diners Club International Cards
Global Payment Services: International Bank Transfers, Bitcoin, Fast Bank Transfer, Klarna, Neteller, Paysafecash, Rapid Transfer, Trustly
Skrill does not charge commissions for receiving money. Regarding withdrawals, Skrill charges the following commissions.
Transfers to bank accounts: Free
Online purchases: Free
Send money anywhere in the world: 1.45%, with a minimum of 50 cents.
For transactions involving currency conversion, Skrill adds 3.99% to the average daily rate of the wholesale interbank market.