I don’t think there is much alternatives out there with commission up the roof for a one off payout every 6months and no hard long term interest on the money being held as banks would. The amount of payments to be processed over a short period of time is a lot ‘relatively’ and most take it out within a short period of time anyway which I would assume is of little to no interest to the banks to charge same rate as PayPal for processing. Plus giffgaff would have looked at alternatives if there was but as time changes, maybe alternatives would prop up that giffgaff can take advantage off aside direct bank deposits or banks processing the payments.
Any thoughts on alternatives yourself?
Like some others, I was reluctant to open a Paypal account, and disappointed that it seemed to be the only method for Payback cash on Giffgaff. However, having opened an account, because there was no alternative, I have been pleasantly surprised at how easy it was and how well it's worked - for me at least. I've been using it for nearly 2 years, with no problems at all, for Payback and payments, including topping up my husband's account, and I now occasionally use it for other payments too - but I've never used E Bay or any similar companies. I don't have any cards linked to it - only my bank account, and I'm happy to keep it that way. Although I'm now a Paypal 'fan', I can understand that some people might prefer a direct credit method of payment, particularly after a bad experience.
The advantage PayPal has over other payment methods, for giffgaff, as I see it, comes down to verification of and the sharing of our limited profile information, unlike the main banks. The giffgaff KB refers to this change in 2016/17.
giffgaff presumably need this audit trail verification to fully comply with accounting regulations including money laundering.
We have now introduced a new verification method that requires you to verify your PayPal account.
To verify your PayPal account just go to your Payback page and click on 'choose cash' you will then be re-directed to the PayPal site were you must login and verify your account. You must click on 'Agree' to proceed.
To choose your Payback method just follow this link https://giffgaff.com/profile/choose-payback-method "
PayPal reportedly had 267 million* active users in the last quarter of 2018 up from 80m+ in 2010 That indicates a potentially higher level of trust than a few financial institutions I can think of.
Edit: Source link*