PayPal wants to give you a debit and ATM card, and we think you should avoid it like all of their services.
PayPal is looking to round its digital wallet service with the introduction of debit cards that you can be used to make payments and withdraw cash at ATMs.
The reality is that PayPal wants to be a bank, but they’re not. PayPal is simply a middleman between the user and the bank. Most business can sign up for a merchant account to take credit card transactions and this is what PayPal did to get started.
Money was then stored in PayPal’s own bank account, earning interest. When a user wants to withdraw money it’s a simple direct deposit to the user’s bank account a few days later.
Paying someone else on PayPal is even easier. Simply minus the amount from the sending PayPal account and credit the receiving PayPal account. There are no costs involved for PayPal to do this, but PayPal takes their cut anyway.
Now you see where I’m going with this, your money is tied to a traditional bank and PayPal profit from being the man in the middle. PayPal is in fact not needed.
If you want to safely shop online, pay for an Uber or anything else, get yourself a reloadable VISA or MasterCard. Only put the amount needed on the card and go online shopping.
PayPal’s business model is not a very strong one, and most people I know could become a PayPal start up virtually overnight.
People need to wake up to PayPal’s business model and realise they are just the man in the middle taking a cut from your transaction. They favour the buyer and not the seller and in many cases have done wrong against sellers who have been nothing but ethical.
Chet Carter is an Professional Journalist of 25 years, but has worked with a range of businesses giving him in-depth understanding of many different industries.