Issues

Charitable organizations pursue important causes and provide public services, with no intention of making a profit. Donors, be they individuals, groups, or companies, spend their hard-earned dollars to support these causes. Transferring funds from donors to charitable organizations, however, takes resources. The wide variety of payment methods available today – checks, credit cards, digital wallets, etc. – has democratized charitable giving by enabling people of any means to become donors. Each payment method though comes with its own unique set of costs and benefits.

Rapid Improvements in technology are enabling business models in the payments arena that were simply not possible 20 years ago. The innovations in industry, though, operate within a regulatory system that is struggling to keep pace. In this white paper, PayPal advocates the use of a new decision-making model in the United States—SMART Governance—to deliver the important goals of underlying payments regulation in a manner that benefits government, consumers and industry.

The overarching policy goals behind payments regulation remain relevant. However, rapid changes in consumer behavior, technology and merchant need are transforming the payments industry. Focused on the payments arena, this four-part document explains the transformation that is taking place in the industry, sets out why we think the approach to regulation in Europe can similarly innovate and transform, offers concrete ideas about how this could be done and ends with a case study and call to action.

The global electronic payments industry has expanded significantly since PayPal processed its first online payment transaction in 1998 and continues to be one of the most dynamic and innovative financial services sectors globally. However, the regulatory environment supporting this industry and its consumers has been challenged to keep pace and adjust to this changing marketplaces. The objectives of this paper are to focus on a new regulatory decision making methodology that is innovative and flexible and outline governance models that focus on technology and data for managing risk.

PayPal submitted comments in response to the proposed rule and request for public comment by the Consumer Financial Protection Bureau (CFPB) on Prepaid Accounts under the Electronic Fund Transfer Act and the Truth in Lending Act.

PayPal submitted comments in response to the Consumer Financial Protection Bureau’s (CFPB) Request for Information related to mobile banking and financial management services. PayPal’s comments noted that PayPal’s users are increasingly turning to mobile devices to conduct all manner of financial transactions. In addition, the letter explained that mobile technology provides opportunity to financial services providers to expand the reach of their services to a broader user base.