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A comment on US proposes barring tech companies from offering financial services. Parent comment

Re:US proposes barring tech companies from offering financia... by dragonwriter on Thursday July 25, 2019 @09:03AM (#20524986)
> Isn’t a banking license mandatory for a company that offers financial services?

No, banking is a subset of financial services, and not all financial services firms are banks.

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Re:US proposes barring tech companies from offering financia... by wil421 on Thursday July 25, 2019 @09:05AM (#20525001)
PayPal is a good example of a financial service company that’s not a bank.
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Re:US proposes barring tech companies from offering financia... by wheelerwj on Thursday July 25, 2019 @09:08AM (#20525028)
Thats not 100% true. Paypal may very well own a bank, or at the very least cooperates with a bank, to stay in compliance with some of the services its offers.

Financial services companies are often a complex arrangement of licensed and/or white-labeled services that are necessary to maintain compliance with regulations in the multitude of jurisdictions in which they operate.

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Re:US proposes barring tech companies from offering financia... by wil421 on Thursday July 25, 2019 @09:22AM (#20525135)
PayPal does not have a banking license so they must partner with banks to other some services. Similar to Apple offering 0% loans on iPhones with Citizens or loans with interests for Macs using a Barclay credit card.
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Re:US proposes barring tech companies from offering financia... by realityking on Thursday July 25, 2019 @10:16AM (#20525518)
While a little off-topic, since this is an article about the US, PayPal does have a European banking license: https://web.archive.org/web/20161122071031/http://www.e-coml...
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Re:US proposes barring tech companies from offering financia... by runeks on Thursday July 25, 2019 @09:06AM (#20525009)
But they need a license, right?
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Re:US proposes barring tech companies from offering financia... by dragonwriter on Thursday July 25, 2019 @09:17AM (#20525104)
PayPal is a money transmitter, which requires a different federal license than a state or federal banking license.
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