PayPal is a company trying many different things these days. Rather than just being the world’s leading online payment processor, the company is targeting new markets. Vanilla banking seems to be of great interest to the company as of right now. As such, the company will offer a new debit card for online and offline shopping.
It is good to see more companies focus on the unbanked population. For those people using a payment card is virtually impossible. PayPal aims to change all of that with their new project. On top of these debit and credit cards, the company will also issue a cheque deposit system. That decision is pretty remarkable as well, although it is a positive one.
A Bold Move by PayPal
This slew of new services is a joint venture with leading financial institutions in the US. This confirms the new service will only be accessible to unbanked US customers. It is unclear if this feature will roll out to other countries as well. After all, unbanked individuals can be found all over the world.
It is also interesting to note how PayPal is not planning to obtain a US banking license. This is achieved by partnering with smaller banks which provide the necessary services A remarkable decision, although one that removes a lot of the proverbial red tape.
Users without a bank account can deposit paychecks into their PayPal account with additional charges. That particular feature is fully FDIC-insured and does not require a minimum balance in the PayPal account. It will be quite interesting to see how this new venture will play out for the company.