Paypal becomes a bank in Europe
24 May 2007eBay subsidiary PayPal is to become a bank in Europe. As part of the move, PayPal will move it’s European headquarters to Luxembourg, where the banking license was given. It’s a pretty good deal for PayPal and their owners eBay as the move to become a bank will give them a little more of a image of solidarity and could lead to increasing the lead over the closest competitor, Google Checkout.
PayPal has 35m customers in Europe, including 15m in Britain, which is the region’s biggest online shopper. More than half of Britain’s population is now online and more than half of British internet users have a PayPal account.
Of course, the next step could be to try and push for bank status in the U.S. but I believe the Government has put a temporary stop to any new banking licenses as a result of both Wal*Mart and PayPal’s pushes to become banks. The result of that is of course is that it may be impossible to become a bank in the U.S. for some time to come.
[tags]paypal,ebay,bank,paypal bank,google checkout[/tags]
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