PayPal is considering expanding its digital wallet service with the launch of debit cards that one could use to make payments and withdraw cash at ATMs, as per the reports of The Wall Street Journal. The company has partnered with the small banks for offering the direct deposit, debit cards and some other services.
This would be an addition to the other banking services like being able to deposit a check to one’s account by clicking a picture of it and even small business and personal loans. The idea behind this addition is to get people who have no bank accounts onto PayPal’s platform, rather than converting the existing customers to traditional banks.
The company wants to push its customers closer to the conventional banking services.
PayPal had been busy with the testing of its new offerings with some of the users in the United States for the last few months, having linked up with some small banks for handling these multiple functions. It is important to mention that the company gave out physical cards previously, these prepaid cards that work anywhere Debit MasterCard is accepted and could be reloaded whenever one wants.
One of the features that its new card offers is to permit individuals to avail the services they could not try with cash or checks like booking Uber or booking an Airbnb, as informed by the PayPal Chief Operating Officer—Bill Ready.
He said that the individuals who are excluded from the banking system to make them a part of the digital economy is the goal of the company.
Consumers with little balances are usually not entertained by the banks and thus must rely mostly on check-cashing centres and other option providers of financial services.
PayPal would not be charging any monthly fees and does not require the customers to keep a minimum amount of balance.
PayPal is not the only tech-first company getting into the finance business in near future, Amazon is also expected to launch its own service. It appears that the future of customers banking would have very little to do with the traditional banks.