PayPal is a widely used digital payment method in South Africa and is available as a deposit option in several legal online casinos operating in the country. Since its launch in 1998, PayPal has become one of the most popular and trusted online payment systems globally, offering a range of services to both businesses and individuals.
One of the primary reasons why PayPal is a preferred deposit option for online casinos is its ease of use. Users can make deposits into their casino accounts by linking their PayPal accounts to their casino accounts, allowing for fast and secure transactions. Additionally, PayPal provides users with the option of setting up automatic payments, making it easier for players to manage their funds and gambling activities.
Another significant advantage of using PayPal as a deposit method is that it offers users unparalleled security. PayPal uses advanced encryption technologies to protect users’ financial information, thereby preventing unauthorized access to their accounts. Furthermore, PayPal provides buyer protection, ensuring that users receive refunds for any fraudulent transactions.
PayPal is also an internationally recognized online payment system that operates in over 200 markets and supports over 25 different currencies worldwide. This flexibility allows players from different parts of the world to access and use PayPal as a deposit option in South African online casinos. Additionally, PayPal offers competitive exchange rates, making it an affordable option for players looking to deposit funds into their casino accounts.
Everything You Need to Know About Paypal
PayPal is the original online payment service. The company has been through a number of name changes and survived ownership changes, mergers and going public. Founded in 1998 by Peter Thiel, Max Levchin and Luke Nosek under the name Confinity, it was part of a large digital security business. Once they saw the potential of a digital payment service, they shifted their focus.
In 2000, Confinity merged with X.com – this was when Elon Musk entered the picture. Musk was the founder of the online bank X.com and brought his knowledge of the financial world to the project. At this point, the company name changed to PayPal.
By 2002, the company had its IPO, and e-auction giant eBay bought it for $1.5 billion. PayPal became the promoted payment method on the site, ensuring it would become known worldwide. For over a decade, this partnership helped both companies flourish.
As of Q4 2021, it had over 426 million users, with 5.34 billion payments made in the quarter. PayPal has the lion’s share of the online payment market, at 50.32% as of September 2021. It now accepts 26 different currencies – but, unfortunately, does not currently support ZAR.
How to Use Paypal – The Basics
PayPal is fairly simple to use. It works like an online wallet, used alongside traditional bank accounts as a digital cheque account. Once you have deposited money into your PayPal account, you can use it to make payments online.
You can make deposits to a PayPal account or link it directly to an existing bank account. Once you have linked a debit card to the PayPal account, you can pay with that card or with your PayPal balance.
Using a debit card through PayPal adds an extra layer of security. The transaction will show as a PayPal transaction, hiding your card number and information from the merchant or e-commerce platform. This is one of the major perks of using a payment app like PayPal.
Paypal and Online Casinos
The relationship between PayPal and the online gambling industry is tightly controlled and monitored. Before the US government crackdown on online casinos, PayPal was a popular choice for casino deposits and withdrawals. A series of laws passed to quash online gambling in the US during the early 2000s caused PayPal to pull back and re-examine how it did business.
In recent years, PayPal has created a strict verification process for online casinos. Only verified and approved online casinos may accept payments. In addition, the casino must operate in a country where online casinos are completely legal and fully regulated.
As individual states in the US pass legislation legalising online gambling, PayPal has begun to process transactions from licensed vendors operating in those states. Casinos in the UK and several mainland European countries can also get on the approved PayPal list.
In South Africa, we haven’t quite reached that point yet. Online casinos are still not fully regulated. Without a licensing system, there is no way for South African online casinos to gain approval. Without those legal protections, PayPal can’t allow South Africans to use their services, even when playing at offshore casinos.
PayPal is still available for South African residents – just not for online casino or online slots transactions. It remains one of the best options for sending money to friends and family and shopping online.
How to Get a Paypal Account in South Africa
It’s easy to create a PayPal account through the official website. You can use either a desktop or a mobile device – there is also a PayPal app for those who prefer. It is a simple process overall. Keep in mind that PayPal has strict rules about complying with all local tax and money laundering laws.
A fully verified account allows you to use all of PayPal’s services and features. This is what you’ll need:
An email address to which you have access.
Your phone number.
South African bank account with internet banking enabled.
A copy of your bank statement.
An active credit or debit card.
Proof of identity, such as a passport or national ID card.
Your income tax number is easily found on a SARS document.
There are two main types of PayPal accounts: Individual and Business. The differences are fairly obvious. An Individual account is for personal use – things like online shopping, sending money to friends, etc. A Business account is for running a business online.
Once you have proven your identity, follow the on-screen prompts to activate the account and make it fully functional:
Link your bank account and your PayPal account.
Add your identification documents.
Link your credit or debit card to your PayPal account.
Even though PayPal partners officially with First National Bank (FNB), you can still use it if you have an account with any other South African bank. You will need to use FNB’s page to link your bank account to PayPal.
Using Paypal for Casino Deposits
This advice only applies to online casinos in fully legislated and regulated markets. This, sadly, does not currently include South Africa. If you happen to be on holiday or working in one of these markets, this information on making casino deposits could come in handy. Here are the steps to using PayPal for online casino deposits:
Deposit enough money into your PayPal account to cover your casino expenses.
Log in to your preferred online casino and navigate the ‘Deposit’ page.
Select PayPal as the deposit method.
Enter the amount you want to deposit, ensuring it is over the casino’s minimum.
Provide your PayPal details to authorize the transaction.
PayPal transactions of this kind are instant. You should be able to start playing faster than almost any other deposit method!
Using Paypal for Casino Withdrawals
One of the nice things about PayPal is how standardised it is – this means that the process for making a withdrawal is almost identical to the process of making a deposit. Any major differences will be on the casino’s side. These are the primary steps:
Log in to your casino account.
Check your account balance to make sure it has enough to cover your withdrawal.
Navigate to the ‘Withdrawal’ page on the site.
Select PayPal as the payment method.
Enter how much you want to withdraw and submit the request.
The main difference between the processing of deposits and withdrawals is the time it takes. While deposits are usually instant, withdrawals can take up to several days to complete. This depends on the types of security checks that the online casino does.
There is one more step if you want the money you have withdrawn to reach your bank account. After processing the withdrawal, you will need to transfer your funds from your PayPal account to your bank account. This may take one to three days, though you can often pay a fee to speed up the process.
