re: Is Paypal is turning into a Bank ?
I had the PayPal credit card and it was actually issued by GE Money Bank.
PayPal would never become a bank voluntarily - too many rules and regulations. They would have to be audited by the FDIC and provide insurance for their accounts, be subject to depositor notifications, maintain a certain percentage of liquid assets, etc. Not to mention they would have to pay in to the FDIC. They would have to have an actual legally acceptable reason for closing accounts, they couldn't just say they deem the account to be a risk. They couldn't hold money for 180 days. They would have less control over their users' transactions and also whom they do business with.
I just can't see it happening, unless the US Government forces them to. And I really don't see that happening either.
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