If someone asked you to name a few payment methods, the answer would be quite expected? Bank wire. Credit cards. Maybe even PayPal? Still, what most people don’t know, is there is a growing trend of prepaid cards and online vouchers. Whether you want to play at a PaysafeCard casino, need to purchase a new pair of limited edition sneakers without the transaction is visible on your bank statement, or just want to buy an imaginary sword for your character in the latest video game – online vouchers and prepaid cards will be there for you.
Before we explain how the entire thing works, it is best to define alternative payment methods. Alternative payment methods are those that are not offered by big banks and financial institutions, such as credit card companies. They are usually based on the 3rd party system. Instead of using your credit card directly on the site, you use it to purchase your prepaid card or voucher. Then, you make the purchase or deposit online, by using the data provided on a single-use card. Thanks to this approach, it is impossible for any harmful groups or organizations to steal your data and use it. Essentially, you use the traditional payment method for the purchase of an alternative payment method, thus leaving no written trace about your activity or personal information.
Prepaid Cards vs. Vouchers vs. Cryptos vs. e-Wallets
Prepaid cards such as Paysafecard are the most common type of alternative payment method. Another popular type is vouchers, which can be purchased on kiosks, gas stations, and grocery stores. They come in the form of not a card, but a simple piece of paper, similar to a store receipt. Both of these methods are activated via a special PIN or code. What many miss out on, is the information on how cryptos are also considered an alternative payment method.
Whether you mine them or simply buy on an exchange, cryptos are here to stay. In fact, some estimates say there are over 300 million crypto users worldwide, and we can only expect to see that number grow. What makes them so unique is that they are also popular in Africa, one of the continents that are usually perceived as underdeveloped especially compared to Europe and the US. In fact, Africa has more crypto users than the States (32 million against 28 million). Still, not a single continent comes close to Asia, where there are 160 million crypto users (albeit, we have to say there are also more than 4 billion people living on the same continent).
Compared to them, vouchers and prepaid cards are far more local. The Paysafecard is available in 40 countries, but it is primarily focused on the European market. At the same time, some vouchers are popular almost exclusively in Asia, especially India, where traditional banking methods never took root. On the other hand, the prepaid card and voucher market is flourishing there, with companies such as AstroPay taking the lead. In fact, prepaid cards are so popular, they are offered by major banks and even have rebate and loyalty programs. For an average Indian with no bank account (or with an account they barely use), vouchers and prepaid cards are perfect options and universal payment methods.
An even more universal method is e-wallets, usually available worldwide. They serve as a bridge between your credit card company or bank, and the site where you make a payment, such as an online casino. What happens is that you first load some money into your wallet by using the classic payment method of your choice. Then, the money is being transferred from the e-wallet to the service provider you want to pay. E-wallets have grown so big, some of them even offer debit cards that allow you to avoid withdrawing your money to bank accounts. After you pay a small fee for sending the card to your home address, you can use any local ATM to withdraw cash, or pay with it as you would with any other debit card.
Privacy as the Top Priority
The main reason why we see so many prepaid cards these days is the increasing awareness of privacy on the internet. Just think about it, if you purchase something online, that payment will be listed on your bank statement or credit card statement. It can be used against you both privately and professionally. For instance, Croatian banks don’t give loans to clients who have made a deposit via bank wire, debit, or credit card provided by the company. Alternative methods, in cases such as this one, are often the only choice a person can have. They simply leave no trace behind, and can even be paid in cash. Also, there is the option of online purchase. In that case, the bank statement will show the purchase of the voucher or a card, but not the purpose for which it was purchased.
Another important element to alternative payment methods is speed. Most traditional methods take time. In the best-case scenario, you will have to wait up to 3 days to get a withdrawal or a refund, but it can take up to 7 days or even longer, depending on the company you are doing business with. At the same time, most alternative payment methods support same-day execution.
They also tend to be more cost-efficient. To illustrate it, we will use the example of a bank wire. If you choose to make an international payment via bank transfer, the bank will charge you a fee. If that payment requires a currency exchange, the fee will be higher. Want to see it processed on the same day? Count on more additional costs. Alternative payment methods are simply cheaper, faster, safer, and more discreet than traditional ones. They guarantee seamless transaction at low cost, without ever exposing your information to the merchant, and support multiple-currency accounts to help you avoid additional fees.
Post by: Gilfred Helmonsen
Hey! I’m a huge fan of technologies and human development by learning and doing things you like. I’ve always been into e-gaming and poker, a great possibility to combine it with work and the professional sphere (for the time being I work as a chief editor of NorskCasinoHex) allowed me to become a gambling expert with more than 5 years of experience in total. I enjoy always learning new, digging deeper into the niche of online gambling, and sharing my expertise and founds with the others interested.