PayPal becomes a bank to fight off Google

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PayPal is registering itself as a bank and moving their headquarters to Luxembourg in order to position itself as a strong competitor against Google. I am not sure whether this means that PayPal will still be governed by US laws or otherwise.

PayPal said it was moving its headquarters to Luxembourg, where it has been awarded a banking licence. This means it will no longer be authorised by the Financial Services Authority, which has overseen PayPal since it became an Electronic Money Issuer in 2004.

PayPal has 35m customers in Europe, including 15m in Britain, which is the region’s biggest online shopper. More than half of Britain’s population is now online and more than half of British internet users have a PayPal account.

PayPal allows users to pay for goods and services online, without having to key in their card details for each purchase. The service also hides account details from retailers, for extra security.

I hope that this move would mean that PayPal will recognise Malaysian banks. If they can offer a EFT transfer to Malaysian banks, I would certainly most welcome it. I will probably retain VMI only for overseas travel.

    17 thoughts on “PayPal becomes a bank to fight off Google”

    1. I am a teenager and I just made a paypal account and I don’t have a bank account or a credit card. I have a website that gives free money and I have enough money to redeem it on paypal. I want to use paypal to buy things from ebay but to do that I have to verify my paypal account. Is their anyway to verify it without having a bank or credit card. I need it really badly please help me out.

    2. Which type of paypal account should I sign up for – personal, premier, or business? I plan on buying and in the future selling some items of Ebay.

      Also, does paypal take any type of a commission when you sell something and the money goes into your paypal account?

    3. Okay… well I just sold something on ebay. And the buyer sent me the payment via PayPal. But paypal says that they put the payment temporarily on hold. And I read that the funds will be sent to my balance if I get a positive feedback or if I print a shipping label using PayPal. So I printed the shipping label and am going to send the item tomorrow. But how long will it take for the payment to be released from hold after I printed the shipping label? Anyone with personal experience with this?

    4. What’s the difference between paying online through a checking account’s debit card and paying online through PayPal? What are the PayPal advantages over the internet paying methods existent before PayPal came along?

    5. What is paypal exactly??? I got $100 gift card for christmas and I wanted to buy victoria secret exclusive clothing off of ebay. The girl that is selling it says she excepts paypal. But what is paypal? Can I use my gift card through paypal?

    6. I’m selling something for the first time on ebay and I’m trying to figure out how i receive the payment. I know i can link my checking account to my paypal account but will paypal charge me for selling and if so how much? Any info on paypal and how it works would be useful.

    7. I did not make any purchase. I do not keep a balance at Paypal; I made it clear when I signed on that I want to be able to authorize any payments. Paypal deducted funds from my personal bank account, acknowledged its mistake, did not refund the money, but deducted more!

      What recourse do I have? They have sent about 15 emails saying that they are dealing with the situation, but it is clear these are form letters that have no real understanding of the situation.

    8. I’m planning to sell some art on Deviantart, and I’ll be using Paypal.

      I don’t get the transaction part. Actually, I don’t get anything on how to use Paypal for receiving/giving money. Is there like a link I can give out for the buyer or something?
      I know /that/! But I don’t get how the buyer /finds/ my account to put the money in!

    9. Some publishers that wanted to publish my books only accept and pay with paypal. I tired to open paypal account as a Niegria but met the hurdle of rejections. Please, what can I do?

    10. To verify the paypal account is necessary to link our credit card or our bank account.
      I added my bank account to paypal. They say that by doing so the paypal account is verified.
      But so far nothing has happened.

      Does anyone know how is the verification process? How long until the account is verified? The paypal will get in touch with me?

    11. Paypal’s moneymarket interest rate is around 5% right now, which is competitive, if not just better than, local savings and cd rates. My temptation is to use paypal as a place to store some savings, like up to $8000 over the next year or so. I’m curious if others are doing the same? Are there any reasons not to? It’s still relatively liquid, right?

    12. Here is the question, please don’t read more into it than I am asking, kindly.

      If I pay a large payment via paypal(couple thousand), then how long does it take for the receiver to access it. Does Paypal have a definite end time that it WILL be there/available/accessible?

      Sincere input is appreciated. Thanks!

    13. My little brother got on my paypal account and accidentally withdrawed 55$ into my paypal account while my bank account had only 20$. Now im 30$ in debt. How do I send money back into my bank. Also what happens if my bank account goes in debt I have a chase credit card.

    14. I have this paypal account that I signed up for giving my PAN number, but now, in order to proceed they are asking for my credit card number and I dont have a credit card!
      Anyway, I would need paypal account in order to receive my payments, so is it possible to use it without credit card details?
      Please Help!

    15. Also, what what does paypal charge for each of those accounts if I were to sell something on eBay?

    16. My paypal account was limited due to Pan problem,but now it is functional.I have been receiving monthly payments from a website but now my paypal balance is zero.How can I trace my unclaimed money?

    17. In my paypal account I keep a small amount of funds for the odd purchase off ebay etc. Recently though when i’ve paid for purchases the money has come direct from my bank account, completely ignoring the funds already in the paypal account which were more than enough to cover the small transaction. Now I’m left waiting endlessly for funds to clear

      Why are they doing this?

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