PayPal is starting to offer more traditional banking services like debit cards and depositing checks
PayPal is looking to expand into something closer to a real bank, according to a report in The Wall Street Journal. It’s beginning to roll out more traditional banking services to customers, including ATM-compatible debit cards, direct depositing paychecks, and FDIC insurance.
How PayPal can actually do this is fascinating since it doesn’t actually have a banking license in the US. According to The Wall Street Journal, the company is getting around that by quietly partnering with several small banks that can provide those services. So behind the scenes, it’s not PayPal running these services, but a Delaware bank handles debit cards, a bank in Georgia deposits checks that users take pictures of, and banks in Utah offer loans to customers...