- What is Skrill, and how does Skrill work?
- How does Skrill make money?
- Account Fees
- Skrill Visa® Card Fees
- Fees When Buying and Selling Crypto
- Currency Conversion Fees
- Skrill subsidiaries, acquisitions, and exits
- Skrill profit and revenue
- What is the Skrill business and revenue model?
- Skrill funding, net worth, and valuation
How does Skrill make money and how is it free to use? Well, here is a full, in depth, breakdown of their four (4) revenue streams and the different products and services they offer, as well as the Skrill business and revenue model, how much Skrill makes per year, and how Skrill works.
What is Skrill, and how does Skrill work?
Skrill (formerly Moneybookers) is an online payment service that offers online payment and money transfer services.
Founded in 2001, Skrill went on to later ger acquired by Paysafe on March 23, 2015, for a reported €855 million ($1.01 billion USD).
Since that time, Skrill reportedly now has more than 40 million active users across 200+ countries and supports more than 40 different currencies.
So, how does Skrill work? To use Skrill, you can first download their mobile app from the Apple App Store or Google Play store; or visit their site and create an account.
Once a Skrill account is created, you can simply link your bank account or card and start doing things like sending and receiving money, exchanging currencies, buying and selling crypto, and more.
How does Skrill make money?
According to Skrill, Skrill has more than 40 million active users across 200+ countries and supports more than 40 different currencies.
So how does Skrill make money off of all these active users?
Below is a breakdown of how much money Skrill makes and its revenue model. Including all revenue streams and how much they charge for their services.
Here are the 4 ways of how Skrill makes money in 2022
Skrill has a revenue model that makes money in four (4) ways; from account fees, Skrill Visa Card fees, crypto fees, and currency conversion fees.
#1. Account Fees
One of the ways Skrill makes money is through the account fees they charge their users for using the account (or lack thereof).
Skrill withdrawal & inactivity fees:
- Account withdrawal fee: $5.50 USD per withdrawal
- Account inactivity fee: $5 USD per month (as long as you log in or make a transaction at least every 12 months)
Note: It’s reported that Skrill has more than 40 million active users.
#2. Skrill Visa® Card Fees
Skrill also makes money from the fees it charges its users for using their Skrill Visa Card.
While the Skrill Card does not charge its customers for things like POS transactions, they do charge for them a number of other things – which you can see below.
Skrill Card fees:
- Annual fee: $10 USD
- ATM fee: $2.50 USD
- Application fee: $10 USD (for customers who do not meet certain criteria)
#3. Fees When Buying and Selling Crypto
In July 2018, Skrill expanded its platform services to allow its users to also buy and sell cryptocurrency using Skrill.
Users can use the currency they have in their Skrill account to buy and sell 40+ different cryptocurrencies – including Bitcoin, Ethereum, Litecoin, and more.
Skrill makes money from this by taking a flat fee or percentage (depending on the transaction amount) whenever users buy or sell crypto on their platform. Which you can see the crypto fee breakdown below.
Skrill crypto fees:
- up to $19.99 USD: $0.99 USD per transaction
- between $20 to $99.99 USD: $1.99 USD per transaction
- above $100 USD: 1.5% per transaction
#4. Currency Conversion Fees
Another fee Skrill makes money on is the currency conversion fees it charges its users for exchanging or receiving another currency.
As noted above, Skrill supports more than 40 different currencies on its platform to be sent, received, and exchanged. Whenever currencies are exchanged, the user receiving it will incur a currency conversion fee of 3.99%.
Skrill currency conversion fees:
Note: Skrill supports 40+ different currencies.
Skrill subsidiaries, acquisitions, and exits
Aside from Skrill being acquired by Paysafe for $1.01 billion USD, Skrill has had its own fair share of acquisitions as well.
To date, Skrill has made a total of 2 acquisitions.
Skrill profit and revenue
Skrill’s last reported earnings came in 2014 when they brought in $331 million in revenue. Since then, Skrill has not released any official reports in regards to company earnings.
Note: Because Paysafe Limited is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Paysafe’s publicly released financial reports, including annual reports, through Paysafe’s investor section on their website.
What is the Skrill business and revenue model?
Skrill makes money through a few revenue models that they combine within their company, they are:
- Fee for service (FFS) business model
- Business to business (B2B) business model
- B2B2C (partnerships) business model
- Mergers and acquisitions (M&A) business model
Skrill funding, net worth, and valuation
Skrill’s Crunchbase profile shows Skrill has not raised any funds.
On March 23, 2015, Skrill was acquired by Paysafe for €855 million ($1.01 billion USD), per reports.