Paypal has fought very hard not to be classed as a bank (which comes with regulations and certifications). As far as I know, paypal doesn't do fractional reser

Paypal has fought very hard not to be classed as a bank (which comes with regulations and certifications). As far as I know, paypal doesn't do fractional reserve banking (because it's not a bank and that would be illegal), it just collects a fee on the seller's side for each transaction, so everyone pulling out all of their money at once would probably not be that disastrous, supposedly they do have that money just sitting in an account. It would be disastrous to paypal as a business, and they would probably use fine print to keep that money, but out of greed, not out of lack of liquidity.