Neteller is an online payment system which is very popular with online bingo and casino operators and their players. What’s more, it’s British. In a world that is seemingly more and more dependent on American mega corporations like Amazon, Apple and Google, here at last is a trusted electronic payments service that is based on this side of the pond.
History of Neteller
Having said all that, the company was in fact originally founded in Canada! It was formed in 1999 to help service payments to the new and rapidly growing online gambling industry. At the time, many of the larger banks and financial services companies were reluctant to transfer payments to online gambling sites.
There were several reasons for this. Firstly, many of these sites did not have much of a track record: online gambling was a new phenomenon, so there was little chance for these fledgling businesses to build up a decent financial record. The gambling industry did not exactly have a reputation for financial rectitude in any case, particularly on the other side of the Atlantic. There was also the problem that the legal status of the new industry being unclear, leading many banks to decide not to take on the risk.
This clearly left a big hole in the market, with players keen to take advantage of the new services, but few means of funding their play. Neteller was only too willing to fulfil this latent demand, and started to process payments to online bingo sites and casinos in the summer of 2000. It was an instant success. Within months, it was processing deposits and withdrawals for well over 80% of the world’s online casino operators, with around 95% of the company’s revenues being derived from online gambling payments.
Whilst this success was very welcome, it did leave the company vulnerable to precisely the kind of events the mainstream banking industry had been concerned about all along. Sure enough, a severe tightening of the regulations with regard to online gambling in the United States struck a devastating blow to the company’s finances. Their American players’ accounts were frozen as online gambling was effectively banned in most states. As a result, Neteller’s revenues collapsed from close to $240 million in 2006 to just over $60 million by the end of the decade.
The newly inclement financial climate caused Neteller to move the company across the Atlantic, relocating to a new headquarters on the United Kingdom protectorate of the Isle of Man. This move took place in 2004, and the company remains based on the Irish Sea island to this day. Neteller has made much headway in its attempts to diversify in the intervening years, which has met with considerable success. It has recovered from its earlier difficulties and continues to thrive, although a large proportion of its revenues continue to flow from its online gaming interests.
In the summer of 2019, the company quit the American market completely and it is no longer in operation there. Which is more than a little ironic, as it is at just this point that the regulations with regard to online gaming in America are being loosened in many states.
The online payment industry has undergone considerable consolidation over the past decade or so. Previously popular payment methods such as Ukash, Skrill and Moneybookers have all been taken over, with some remaining operational and others closed or merged. Neteller itself merged with Skrill before itself being acquired by Optimal Payments PLC, the owners of pre-payment card service Paysafecard, in 2015. This conglomerate, since re-named after its primary service as Paysafe Group, remains the owner of Neteller at the time of writing. Neteller continues to operate as separate payment system, and remains headquartered in Douglas, the capital of the Isle of Man.
How does Neteller Work?
Neteller is an electronic online payment and money transfer service. It’s free to open an account. All you need is a valid e-mail address to get started. You’ll need to think of a secure password, and to link your Neteller account to a credit card, debit card or your bank account. You can also transfer funds to friends and family via their e-mail address. They’ll also need to have a Neteller account in order for them to withdraw their funds.
There are dozens of different ways to upload funds to your Neteller account, depending on where you are in the world. For United Kingdom based account holders, there are several easy to use alternatives, such as Visa credit or debit cards, your bank account, Paysafecard, Pay by Phone and Trustly. You can even use bitcoin.
There is no fee to pay when you use your Neteller account to make payments. A minimum 1.45% fee is charged for money transfers, and there is also a fee to pay when you upload funds to your account. This can vary according to the method chosen, but will usually be charged at 2.5% of the amount deposited. There are also fees for withdrawing cash, and for any currency conversion involved in a transaction.
Neteller and Online Gaming
Neteller remains a very popular means of making payments to online bingo and casino brands. It is convenient, swift and secure – your personal financial details are never disclosed to the recipient of your funds. Most online gaming sites accept Neteller as a way for players to make their deposits. To check whether a bingo or casino title accepts Neteller payments, just tap or click on the ‘Deposit Methods’ link on any Oh My Bingo review.