Is PayPal a merchant bank?
PayPal is not technically classified or licensed as a traditional merchant bank, despite operating as a dominant global financial technology company facilitating online payments and electronic money transfers. Instead of holding a full universal banking charter in most jurisdictions, PayPal functions primarily as a money transmitter, payment aggregator, and licensed financial institution partner. It collaborates with chartered banking networks to process credit card transactions, hold merchant balances, and extend working capital loans to business users under specific regional regulatory frameworks.
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