Actually, in Europe they ARE a bank: "In 2007, PayPal Europe was granted a Luxembourg banking license, which, under European Union law, allows it to conduct ba

Actually, in Europe they ARE a bank: "In 2007, PayPal Europe was granted a Luxembourg banking license, which, under European Union law, allows it to conduct banking business throughout the EU.[54] It is therefore regulated as a bank by Luxembourg's banking supervisory authority, the Commission de Surveillance du Secteur Financier (CSSF)." http://en.wikipedia.org/wiki/PayPal#Regulatory_status http://en.wikipedia.org/wiki/PayPal#Regulatory_status