INTERNATIONAL - In an attempt to move its costumers closer to mainstream banking, PayPal is offering more traditional banking services to customers, according to a report in The Wall Street Journal.
These services include ATM-compatible debit cards, direct depositing paychecks, and Federal Deposit Insurance Corp. (FDIC) insurance.
According to The Wall Street Journal, the company is partnering with several small banks that can provide those services.
The reason for these partnerships is due to the fact that PayPal does not have a U.S. banking license.
The company turned to may small banks that stay anonymous, reported The Wall Street Journal.
Banks such as the Delaware bank handles debit cards, a bank in Georgia and banks in Utah offer loans to customers and small businesses according to The Wall Street Journal.
" Working with several different banks allows PayPal to get products out to consumers faster and that the company has no intention of becoming a bank. He added that if its users already have bank accounts they are using within PayPal, “this isn’t an account for you", Bill Ready, PayPal’s COO told The Wall Street Journal.
There’s apparently no monthly fee or minimum balance to use the services, but users will have to pay ATM fees for using machines, not in PayPal’s network and pay over 1% of any check they deposit through the smartphone camera system.
According to Bill Ready, PayPal’s COO, the company isn’t looking to replace traditional banks anytime soon with the new service.
Instead, it wants to offer banking options to customers that were not able to take advantage of them.
According to Ready, if you already have a bank account connected to your PayPal account, “this isn’t an account for you.”
Additionally, PayPal has been adding other financial functions through a series of partnerships and acquisitions to its website and smartphone apps.
Services such as offering consumer loans, cross-border remittances and automated savings and investment services are also available on PayPal.