After receiving a bank license in the European Union, PayPal said it has no plans to offer new products at this time. PayPal spokesperson Amanda Pires said customers will see no change in how they use their PayPal accounts. "It's business as usual for PayPal in Europe," she said. Pires said the license will allow them to market freely to Internet retailers in the European Union, however.
PayPal announced it had received the bank charter by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg, effective July 2, 2007, and said it would move its European headquarters to Luxembourg, which is also the location of eBay's EU headquarters (http://www.auctionbytes.com/cab/abn/y07/m05/i15/s00).
Currently PayPal has an Electronic Money License through the Financial Services Authority in the UK, and is limited in how it can market to online retailers. PayPal currently has 35 million accounts in Europe.
"The bank license allows us to do more direct sales and marketing of our merchant service products to Internet retailers," Pires said.
The company has no plans to look for banking licenses in other countries, according to Pires.
Link to Podcast interview with PayPal Director of Corporate Communications on podcast.auctionbytes.com: http://tinyurl.com/27sxz5
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After receiving a bank license in the European Union, PayPal said it has no plans to offer new products at this time. PayPal spokesperson Amanda Pires said customers will see no change in how they use their PayPal accounts. "It's business as usual for PayPal in Europe," she said. Pires said the license will allow them to market freely to Internet retailers in the European Union, however.