How did PayPal handle regulatory and financial scrutiny in its early years?

Asked Sep 9, 2015· 1 answer ·United States
Faisal KhanAnswered Sep 9, 2015
PayPal is still not licensed as a Bank or a Financial Institution (in the US and many other territories they operate in).

PayPal was classified as a closed-loop merchant processor in the initial days. Even today, all the money PayPal has is not with them, but with the designated bank(s) that they work with. PayPal is not a bank hence cannot collect to keep deposits to itself. It uses various banks that provide this functionality, and this has been true since day one.
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