Paypal is currently holding more bucks than many US banks the sum of money held by Paypal is more than 13 billion dollars which make it just behind US unit of Toronto-Dominion Bank in terms of money held.
Here comes the difference…
There is a big difference when it comes to how Paypal is different from banks like funds with Paypal aren’t deposits as they just sit without having any interest related to it and also Paypal does not provide deposit insurance to its customers in other words it’s not been given any power that a bank enjoys and it only earns when the funds move.
But is paypal so much different from the banks
Although Paypal is not a bank but it provides some services that a typical bank would like, it plays in the financial lives of people.and paypal can be used to buy things or transfer money more over there are 66 thousand partner stores where you can buy and put money in your account. It even offers loans and with help of paypal customer service tools you could manage a personal budget or invest.
The paypal philosophy
Although CEO of Paypal has said he didn’t want to replace banks instead want to compliment banks and also said that it wants to bring in products to get revenue to lenders he was quoted as saying “What we mean to do is to extend traditional consumer financial services,” he also said that he wanted to target some 2 billion people who were outside the traditional banking system. Paypal’s account balance is little its $13 billion in consumer money globally.