By Jannet Smith 
Introduction
The importance of performing financial transactions in a smooth safe and fast manner cannot be overemphasised in the current world that is driven by technology. In the growing euphoria of Internet business payment gateways have become the life wire of today’s economy as people transact businesses at the click of a button. Skrill is one of the most significant payment gateways today and it provides businesses and customers with an effective tool.
This article focuses on the payment gateway Skrill and briefly explains its background as well as its competencies for different industries. Hence by the time one is done reading this piece they will have a clear understanding of what Skrill is in the field of finance the advantages as well as the problems it has faced and whether it enjoys a future in the digital payment solution sector.
Profile of the Skrill Company
Skrill was established in 2001 as Money bookers and started as one of the first online money transfer and payment companies. It grew rapidly with the increased attractiveness of its proposition of European home based users secure from electronic transactions. Money bookers then hit the big league and further consolidated its operations in 2007 when Investcorp purchased it.
The firm was renamed to the current Skrill form in 2011 and this name has now become a brand associated with digital payments. Skrill gradually grew and then in 2014 took over Ukash which enhanced its position in the international prepaid card market. Nevertheless one of the most significant historical events for Skrill was in 2015 when the company became a subsidiary of Paysafe Group.
This company is known to be a leading global provider of payment platform services. By doing so Paysafe came as a source of resource and knowledge for Skrill to enable the company to widen its services to the global markets as well as expand the number of its services and products.
How Skrill Works?
Skrill works more like an ewallet which enables all its users to hold cash balances and use the money to transact on the Internet. It is compatible with various currencies and it can be customised to pay for several services and products transfer money and even buy cryptocurrencies.
Setting Up an Account
A Skrill Visa card user has to initially open an account on the Skrill platform through an email and a password. The registration method is quite straight forward and it requires the client to input the information required and the completion of the verification process for the security measure.
Adding Funds
When Registration is employed users have the chance to stake capital using several methods such as checking having credit and debit cards or any other type of online payment. Skrill also provides the option of such methods of money depositing as local payment systems in some regions.
Making Payments
Skrill makes payments by entering the recipient’s email ID or phone number. This makes it very convenient for its users to make a transfer to any other person more so one who does not have Skrill. They can be made for merchants online stores or other people.
Receiving Payments
That then allows them to receive direct payments and transact using their Skrill account. Received money can be withdrawn to a bank account spent on the Web or transferred to another member of Skrill.
Security Features
Here Skrill applies stringent measures of safety to guard both funds and the details of the users. Two Factor authentication refers to the use of two components that is a password and a token most of the time in authenticating a user Identity cryptography or encryption refers to the process through which data is converted into codes or the other way around in an effort to ensure the data is only understood by certain people surveillance or tracking of fraudulent activity is the most important aspect of using this type of security system.
Skrill has not been negligent in terms of security this is why it remains an accepted method of making payments online.
Integration with Merchants
In this way businesses find Skrill rather easy to adapt as one of the payment methods since the payment processors that it offers are easy to tackle. Skrills plugins and APIs may be installed for use directly on sites to let merchants take payments through Skrill. This is more so for online store businesses game websites and any firm that deals in online services.
Features of Skrill
Skrill offers a wide range of features that make it a preferred choice for both individuals and businesses. Skrill provides some unique features to its users that are appealing to everyone including individuals and companies such as
Multi Currency Support
Skrill accepts more than forty currencies which also apply to the convenience of performing operations on an international level. It is possible to hold balances in many due currencies on some of the platforms and convert them into these currencies at attractive rates.
Mobile App
Skrill has developed its mobile application for the two primary operating systems iPhone and Google Android. In the account they can manage all their accounts make and receive payments and make purchases from Stores through QR codes.
Skrill Prepaid Mastercard
Today one of the most successful additions to Skrill is a prepaid Mastercard linked to a person’s Skrill account. The usage of this card extends to the use when making a purchase through the Internet making automatic teller machine withdrawals from any station of this banking house or buying products in standard stores that take Mastercard.
Cryptocurrency Integration
Skrill allows its clients to buy sell and invest in cryptocurrencies like Bitcoin Ethereum and Litecoin. This integration can be thrilling for users who are in love with digital currency and wish to deal with it through a reputable platform.
Customer Support
Skrill has a customer support service that addresses different categories of customers through online facilities such as Skype Email and phone. It also possesses numerous facilities that can help the user solve problems such as the knowledge base and the frequently asked questions section.
Market Positioning of Skrill
It was all quite inevitable in the harsh climate of global payment service providers. Skrill has carved out its niche. Some of Skrills competitors include PayPal and Stripe however these two do not offer Skrill unique selling propositions in some market segments.
Market Share and Demographics
Skrill is used more frequently in Europe and this digital money payment service provider has many users. It has also been adopted in other regions of the globe including Asia and Latin America most probably due to export pressure. Skrill customers can be defined as online shopper customers gamer customers or even forex customers.
Comparison with Other Gateways
The charges of Skrill differ a bit lower than PayPal depending on services therefore this service is more convenient for users who frequently conduct intercontinental transactions. In contrast to Stripe which solely targets merchants Skrill is applicable to both persons and companies and the number of services it provides is much larger.
Strategic Partnerships
It has partnered with numerous online merchants particularly in the gambling and Forex industries. It has also assisted the company in achieving growth and developing specialised services for partners in these industries.
Benefits of Using Skrill
Skrill is well established as a highly effective payment method and gateway for the buyer and seller alike. With the plethora of advantages provided it can be all that individuals and companies need. All these make Skrill the preferred tool in a number of practices involving moving money in various capacities from the simple channelling of cash between individuals to more complicated business dealings.
Low Transaction Fees
Another benefit of Skrill is that the firm has some of the cheapest transaction charges in the market particularly for those handled on international platforms. Compared to other platforms especially when making cross border payments it is quite cheaper than other methods of payment such as banking methods.
The fee policy is clear and most of its operations attract a fee of 1. $45% while some of its competitors offer as low as 25$. This is so because the cost of using Skrill is relatively low and therefore ideal for use by freelancers small business people and persons who transact frequently across borders.
Speed of Transactions
In the world of digital payments it is very important that products and services are delivered fast and Skrill boasts of this department very well. Just as the name implies transactions between and among users of Skrill are usually done in real time and can therefore be described as fast.
This is particularly so if the recipient needs immediate payment as is the case with many businesses involved or the person who needs to make the transfer. Skrill can process transactions quickly and it operates in many countries which makes it useful to client who need fast means of making transactions.
International Outreach and Exchange of Money
One of the Skrills biggest advantages is its coverage of world geography. As of now it serves over 200 countries and processes over 40 currencies hence it is a global payment gateway. This feature allows users to be able to transact in different currencies across the globe with ease. Further the processing of payment in various financial spheres is another advantage of using Skrill because it offers a decent rate for the exchange of currency that is relatively cheaper than that of the best known banks.
Skrill money transfers are particularly beneficial for the business people and the entities involved in import or export business because they enable them to conduct cross border transactions at a much lower cost.
Security and Privacy
An important aspect of any payment solution especially where the exchange is in digital form is security and Skrill gets this. It uses the standard measures recognized within the industry for the protection of users information and their money. Two Factor authentication (2FA) is a type of security measure where users have to input a code generated in another device or through a different approach.
Skrill also comes with an interesting filter against fraud that examines transactions for irregularities. For users who want to have maximum control over personal data to be disclosed during the payment Skrill makes transactions possible without the provision of such delicate data as the number of a bank account or a credit card which makes it safer.
Utility for People and Corporate World
The last advantage of Skrill is its flexibility. The platform is appropriate for use by absolutely any person starting from those who have no time to visit a bank in order to perform monetary operations on the Internet to genuine and large scale companies that offer their customers the ability to pay with the help of a special button. For consumers Skrill provides facilities that allow money transfer and online payment for services and products and the users have the option to use multiple currencies.
Businesses are also capable of implementing Skrill on their websites accepting payments in various foreign currencies and leveraging the company’s international presence. In view of this Skrill is an excellent tool for handling multiple and varying financial requirements for any private or business entity.
Challenges and Criticism of Skrill
However like any other payment option Skrill presents several prospects and accompanying setbacks as well as criticism. It is important for users who intend to use Skrill as the major payment processor to grasp these disadvantages.
Transaction Limits and Restrictions
Another common complaint of users is that Skrill service providers have certain limitations to the number and types of transactions that one is allowed to undertake. This means the user’s verification level limits the number of transfers or withdrawals. For such unverified accounts the limits can be very low which especially if a user has to process large amounts of transactions can be a real nuisance.
However these limits can be extended on request by submitting additional documents that will verify a users identity and this often can prove to be tiresome to those using the service.
Issues with Customer Service
Customer support is another aspect in which Skrill has been mostly associated with negative comments. Some of the complaints that the users have raised include the following problems delayed response from the customer support desk and delayed response in attending to customer problems. Like any other online payment solution Skrill has different methods through which customers can seek help through chat email and phone.
However the efficiency and effectiveness of the services could have been improved for different customers. As for any payment gateway service provider dealing in financial transactions the company needs to provide its consumers with customer services that are quick and efficient which Skrill needs to improve.
Regional Restrictions and Limitations
Nonetheless Skrill still needs to be established in all countries and some of its services are prohibited in certain nations. For example what has happened with Skrill where users of this payment system in the United States cannot use all the services that are provided to them by this company because of the requirements of American law.
This is often a critical disadvantage to the users especially in the Skrill Supported areas where the company provides limited services or even no services at all. Further some users complained that they face problems such as Skrills inoperability in particular countries because of local banking legislation.
Aspects of Fees and Services
On the whole Skrill charges are lower compared to the average fees that many of its competitors claim. Still they are not the lowest especially in terms of the new generation of fintech platforms that do not charge any fees for the transactions that they perform or charge lower fees only for specific services that they provide.
Further some competitors offer more elaborate services or give the customer a more pleasant time. For instance PayPal and Stripe provide almost more solutions and connections on the side of the merchant than purely payment processing. Skrill does not have hidden fees but some customers may find fee details rather vague especially regarding issues with exchange rates and cross border payments.
Skrill in Different Sectors
Due to the above features Skrill is a useful payment gateway for many different industries around the world. Here is a closer look at how Skrill can be applied in some fields
Ecommerce and Online Retail
In the category of ecommerce solution services Skrill enjoys widespread use among both buyers and sellers. Online retailers can adopt Skrill to become the integrated payment system that customers can use to pay for products and services. Also the ability to accept and hold multiple currencies as well as the low transaction fees that Skrill charges are features that attract businesses operating across borders.
For customers Skrill is an opportunity to pay via the Internet without revealing credit card numbers to multiple numbers of merchants. Marketplaces and online stores targeting the international audience get value from the fact that Skrill is optimally suited for processing cross border transactions. By buying and selling in bitcoins the merchants who use the platform get paid fast and it helps them to have adequate cash flow in an era when online shopping is getting stiffer competition.
Gaming and Entertainment
Skrill operates in the niche of online gaming and entertainment where payment speed and security are crucial. So there are numerous opportunities to make effective use of Skrill for instance it is rather popular among online casinos and betting sites since it is safe and in addition it works rather fast. Skrill makes it possible for gamers and bettors to undertake small and large transactions within a short period which makes it ideal for businesses that involve time sensitive values like gaming and sports betting.
In the entertainment industry Skrill can be used to purchase digital products videos or music paid subscriptions to online services etc. The smooth integration with other forms of entertainment also makes it convenient for a user to pay subscriptions and buy content without having to fill in their credentials every time.
Forex and Trading Platforms
Skrill solves the problem of the forex and online trading industries where speed and reliable money transfer are essential. People are able to fund and withdraw from their trading accounts via Skrill at minimal charges and within the shortest time possible. Multiple languages availability and the support of multiple currencies as well as competitive exchange rates make Skrill suitable for traders who operate in different markets and need regular conversions.
Most forex brokers and trading platforms prefer Skrill because it is a safe and efficient method for dealing with clients money. The level of security that is provided to the users of this platform acts as a guarantee that the money that traders invest in their trades is safe in the modern world of trading one does not know what to expect.
Cryptocurrency Transactions
All the features are most unique is Skrills compatibility with cryptocurrencies. Customers are allowed to use Skrill to purchase sell and retain different forms of digital currency such as Bitcoins Ethers and Litecoins. This feature is very useful especially for those users who are interested in cryptocurrency but would rather invest in digital assets through a framework that is reliable and known.
It is however beneficial for business since being able to receive or transact in cryptocurrency is an effective way to reach out to techie clients and to avail yourself of the growing market of people who are using cryptocurrencies with the help of Skrill. Skrill is very sympathetic to new users of cryptocurrency and all the services related to them are very easy to use.
Conclusion
Skrill has risen in society to become one of the most flexible and efficient payment platforms in the current financial market. It is also really cheap to use has low transaction fees and has speed of transaction reach and security characteristics that make it suitable for personal and commercial use. However it has its drawbacks like any other financial platform transaction limitations problematic customer support and geographical limitations.
Nevertheless due to having an extensive list of options and focusing on such sectors as ecommerce gambling forex and cryptocurrency. Skrill holds its stake in the modern world’s digital economy. Indeed so they all are contemporary tendencies in the financial industry and nowadays that can be easily implemented by it to expand its offering and satisfy the needs of a wide and international customer base.