PayPal vs. Skrill

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PayPal vs. Skrill
PayPal is virtually synonymous with online payments, and is the most extensively used
payment across the globe. Almost every consumer market is moving online, as consumers
continue to turn to online payment solutions in record numbers each year. PayPal is not alone in
the budding digital money space, with Skrill among the best known alternatives to PayPal.
Skrill’s major advantage over PayPal is its significantly lower transaction costs. Whereas Skrill
charges 2.9 percent for merchant transaction fee, PayPal charges 4.5 percent (Douglas 78). On
the other hand, PayPal’s has the edge over Skrill because it is a large, multiservice platform with
competitors that are not often as diverse. In spite of its high transaction costs, PayPal is better
than Skrill since it is more reliable and does not impose charges on dormant accounts.
Skrill’s major advantages include ease of use, enterprise security, and great value for
money. Since it is regulated by the Financial Conduct Authority through stringent regulations
and rules, Skrill ensures that the platform is very safe and secure. For instance, Skrill has an anti-
fraud screening feature that monitors all user transactions. Therefore, Skrill does everything
possible to keep the platform’s users and their money secure and safe. Another major advantage
of Skrill is that it has fair pricing. For example, Skrill charges 2.9 percent in merchant fee, while
PayPal charges 4.5 percent (Zorzini par. 10). Providing a user stays consistently logged in, stays
active, and makes transactions at least once every year, Skrill would not impose charges on the
service. One of the major disadvantages of Skrill is that it imposes a $5 fee for dormant
accounts- those accounts that are not used for twelve months. Another disadvantage of Skrill is
that it lacks the Live Chat feature that PayPal has. This implies that Skrill has limited customer
service. For example, Skrill would use a Live Chat feature to address the concerns of users who
often complain about the platform’s slow and problematic verification process.
Apart from being bigger and more diverse than Skrill and most competitors, PayPal is
user-friendly. It is also easy to use. For example, bank accounts and credit cards are linked to
users’ PayPal account. This removes the complications of conducting online transactions.
Another advantage is that transactions are recorded. This is in line with the requirements of
under the American Rescue Plan Act of 2021 (Title IX, sec. 9674(e)). This makes it less hectic
for users to create and monitor invoices for their entities. In case of unsuccessful transactions,
PayPal gives users the option of requesting refunds, send e-checks, or follow up on payments.
The main disadvantage of PayPal is that it charges high transaction fees (4.5 percent), and
imposes charges when users receive money. For instance, a user is charged 2.9 percent (plus
$0.30) when they receive money for goods or services.
In conclusion, current research and trends indicate that PayPal is better than Skrill. This is
because PayPal is diverse and multi-service. Additionally, PayPal is better in terms of merchant
acceptance. Nearly all retailers are PayPal accessible, which is why many shoppers find it easier
to use the platform.

Works Cited
Douglas, Erika. “PayPal is New Money: Extending Secondary Copyright Liability Safe Harbors
to Online Payment Processors.” Michigan Telecommunications and Technology Law
Review, vol. 24, no. 1, 2017, pp. 46-93.
United States, Congress, House. American Rescue Plan Act of 2021. Congress.gov,
https://www.congress.gov/bill/117th-congress/house-bill/1319/text 117th Congress
(2021-2022), passed 11 Mar. 2021.
Zorzini, Catalin. “PayPal vs Skrill (And Why You Probably Need Both).” Ecommerce Platforms,
9 Apr. 2019, https://ecommerce-platforms.com/articles/paypal-vs-skrill-probably-need
Accessed 3 June 2021.

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Student’s Surname 1

PayPal vs. Skrill

$0.30) when they receive money for goods or services.

to use the platform.

to Online Payment Processors.” Michigan Telecommunications and Technology Law

Review, vol. 24, no. 1, 2017, pp. 46-93.

https://www.congress.gov/bill/117th-congress/house-bill/1319/text 117th Congress

(2021-2022), passed 11 Mar. 2021.

9 Apr. 2019, https://ecommerce-platforms.com/articles/paypal-vs-skrill-probably-need

Accessed 3 June 2021.

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