So is paypal going to shut down after this goes into effect?
In Fifty Days, Payments Innovation Will Stop In Silicon Valley
11–20 of 216 posts
Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#12What does this mean for systems like Facebook Credits?
Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#13so what if my company uses paypal to process payments and send payouts to users? do i have to care about this stuff or its just paypal's headache now?
Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#14So is paypal going to shut down after this goes into effect?
I don't think they'll go anywhere.
I assume they can easily afford any cost involved. I wouldn't be surprised if they already have the licenses while existing as a non-bank.
Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#15Boohoo, cry PayPal a river. In most countries outside the US, PayPal is regulated like a bank. This means PayPal can't just lay claim to your money and never give it back to you.
They can, however, (and arguably should) put a hold on your account if they suspect fraud.
Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#16In the interest of correctness I should point out that the half a million fee is not a fee but a bond. The state does not take it but it is kept in a trust for people that may be injured by the particular money transmission business that gets a license.
Thus, if a money transmission business steals someone's money you can sue them and when you win you can take your money from the 500,000 bond so you are sure they will not run out on you.
I am not sure whether it is a good law (I have not done enough research to figure that out), but I just wanted to clarify. The quora post made it look like the state was just greedy and taking all the money for themselves.
Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#17Can't I just live as a shareholder in silicon valley, basing my limited company and shill directors in Alabama, and leasing the limited company software produced by my other company in California?
Requirements:
2 limited companies.
Licensing agreement.
Alabama-based Non-executive directors (cousin Ed and Chuck).
Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#18In the interest of correctness I should point out that the half a million fee is not a fee but a bond. The state does not take it but it is kept in a trust for people that may be injured by the particular money transmission business that gets a license. Thus, if a money transmission business steals someone's money you can sue them and when you win you can take your money from the 500,000 bond so you are sure they wil…
It can be a bond or a cash payment, but either way, the money is locked up and not available to use for operations, or gone.
Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#19Here goes one more reason to use Bitcoin, that's where the real innovation is.
Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#20Earlier quoted context omitted.
Credit and debit cards are issued by banks and banks are exempt from money transmission laws. This is why you see most startups gravitating toward niche markets that revolve around the existing infrastructure, but those niches are becoming awfully narrow. In contrast, I contend that the system itself is flawed and needs to be replaced.
Ah, thank you for explaining that to me. I some how missed that from reading the link. Though, it was quite verbose and I am, admittedly, partially into a celebratory post-coding-session bottle of wine. I agree. The system most definitely appears to be flawed. Isn't Paypal forced to operate as a bank in Europe as opposed to the way they exist in the U.S.?
Yes, Paypal is a bank in Europe. They have a bank license in Luxemburg and have devised some pretty nifty technique's for porting that around the rest of the EU.