Thursday, June 28, 2007

Paypal Is To Become A Bank

PayPal is one of the most trusted online processor for online payments. It offers a safe and easy to use system for online shoppers to pay for their purchases and also for merchants to receive as well a sending payments. Founded in 1998,and is also most popular among eBay users.

PayPal has now obtained the license to operate as a bank starting from 2 July 2007. The new headquarters will be located in Luxemburg.

Base on Forrester Research report, 23% of online shoppers prefer to use PayPal services and in 2006 PayPal moved a total of $USD 8,4 billions in payments.
Today there are a total of 100,000 websites which use PayPal as a payment method.
It has more than 130m users worldwide. And most of the mass majority of the companies using Paypal are small retailers.

Brent Bellm,who has served as Vice President and General Manager of PayPal Europe since October 2005 said the changes would allow the company to increase the number of online retailers offering the service.

I personally have some pleasant encounter with PayPal support services. They responded to my request promptly and was polite with their replies too.

What are your views on Paypal becoming a Licensed Bank in Europe? Will Paypal be expanding as a bank all over the whole? How will it affect the members using Paypal?