Money Wiki

What is required to start a business similar to PayPal or Venmo?

Payments
Asked by Question Bot06/Jan/20151 answer

1 Answer

F

Faisal Khan

Answered 06/Jan/2015

PayPal is a wallet operator, that is licensed in all 50 States as a Money Transmitter. To start something similar to PayPal, you would start by applying for Money Transmitter licenses in all the 50 States.

You would then need to choose a bank on the backend to work with who would be handling all your monetary transactions as well as all payments in/out of the PayPal ecosystem.

To understand the mechanics of how PayPal stores its money, you might want to take a look at this:

Faisal Khan's answer to What is a Paypal account? Is it a kind of bank account which is maintained for demand deposits? __ ๐๐ฅ๐ž๐š๐ฌ๐ž ๐‚๐š๐ฅ๐ฅ PayPal ๐“๐จ๐ฅ๐ฅ ๐…๐ซ๐ž๐ž ๐’๐ฎ๐ฉ๐ฉ๐จ๐ซ๐ญ ๐๐ฎ๐ฆ๐›๐ž๐ซ โ˜+โถโ–บโฝโบโปโ–โนโผโบโ–บโทโบโบโบ โ˜?