January 2019
Intermediate to advanced
258 pages
7h 12m
English
Content preview from Blockchain for Business 2019
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Transactions in PayPal
PayPal functions as another electronic payment intermediary. It is an internet company with global presence. Its services are mainly targeted at e-commerce, connecting customers and merchants. All parties using PayPal and holding accounts with it can send payments to each other through the system. PayPal also integrates with the legacy banking and credit card payment infrastructure.
PayPal is not regulated as a bank, because it doesn't operate a fractional reserve system similar to what banks operate. This is related to the activity of taking deposits, making loans funded by these deposits, and keeping only a fraction of the deposits in reserve. This obviously creates credit risks for deposit holders. Since PayPal doesn't ...
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