Where does PayPal actually hold and deposit users’ funds?

Asked Jan 11, 2019· 1 answer

Faisal KhanAnswered Jan 11, 2019

As Paypal itself is not a bank, it uses various commercial banks as the licensed custodians for holding its customers' money.

So when you receive a payment, it is actually under an FBO account that is pooled under PayPal’s name with one of the commercial banks they use.

Fintech Banking Relationships Client Money Accounts Pooled Accounts Partner Banks

Related in Sponsor Banks, FBO Accounts and Banking Access for Fintechs and MSBs

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