Will Venmo replace Western Union?

Most likely not. Venmo is US concentric, whilst Western Union is available pretty much all around the globe. The problem that the two solve are inherently different. It is very unlikely for Venmo to achieve a global status of what WU has. For that to happen, Venmo would have to become a household name like […]

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I am 14, am I allowed to use PayPal?

No, you are not allowed to use PayPal. You have to be at least 18 years of age. Assuming you’re in the United States, then the Terms of Service of PayPal cites the following: Welcome to PayPal! This user agreement is a contract between you and PayPal, Inc. that governs your use of your PayPal account and the […]

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Why do we continue using expensive payment processors like PayPal and WU when there are inexpensive alternatives?

Brand Recognition: Which implies Trust and Network Outreach. Both Western Union and PayPal are large brands. Their brand signifies that a lot of people are well-versed with the name and procedures associated in sending/receiving money with these brands. There may be inexpensive alternatives, but that doesn’t mean, they are excellent as far as network outreach is concerned, […]

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Why has PayPal not created another break through product?

PayPal started as a payment concept and has now evolved to a payments ecosystem. It has created virtually one of the most recognized brands for payments across the world. Within PayPal there are many products. And they continually keep adding to it, by buying/acquiring more companies. Think Braintree, Venmo, Xoom, TIO Network, etc. The breakthrough products are […]

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Where and how does PayPal deposit user’s money?

As Paypal itself is not a bank, it uses various commercial banks as the licensed custodians for holding its customers’ money. So when you receive a payment, it is actually under an FBO account that is pooled under PayPal’s name with one of the commercial banks they use.

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