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Paypal stock price today9/9/2023 ![]() Under no circumstances does any information posted on represent a recommendation to buy or sell a security. Is not operated by a broker, a dealer, or a registered investment adviser. The company also offers consumers person-to-person (P2P) payment solutions. The company enables consumers to exchange funds with merchants using a range of funding sources, which may include a bank account, a PayPal or Venmo account balance, PayPal and Venmo branded credit products, a credit card, a debit card, certain cryptocurrencies, or other stored value products, such as gift cards, and eligible credit card rewards. The firm helps merchants and consumers connect, transact, and complete payments, whether they are online or in person. Its brands include PayPal, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, Happy Returns by PayPal, Chargehound, Paidy and Simility. The company operates a global, two-sided network at scale that connects merchants and consumers with 426 million active accounts across more than 200 markets. The company is headquartered in San Jose, California and currently employs 30,900 full-time employees. ![]() engages in the development of technology platforms for digital payments. “As more and more sectors are brought under the ambit of being a reporting entity, it is likely to increase costs due to compliance burden on these entities as they need to take further accountability as a reporting entity,” said Bhalla.ĭon’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp.PayPal Holdings, Inc. Mumtaz Bhalla, partner at law firm Economic Law Practice, said a lot of other sectors like ecommerce will be brought under PML guidelines eventually. “The PML Act is very stringent, so in my opinion it is better to take a conservative reading on such compliance issues if you are a payment company and start reporting transactions anyway,” said Maheshwari. Any suspicious payment transaction will need to be reported to the Financial Intelligence Unit under the finance ministry. They have to do stricter KYC checks and also build strong reporting standards. This judgement also means that payment companies will have to set up their own compliance and monitoring teams. “PayPal’s stand was that they operate just as a layer on top of banks, just as a facilitator of payments, but the court said that even if you enable payments, you have to abide by the PML guidelines,” said Amit Maheshwari, partner at tax and consulting firm AKM Global. Hence, the company took a stance that it did not need to abide by the PML guidelines. One of the executives cited earlier pointed out that PayPal operates only as an international remittance player in India it is not registered as a payment system operator under the RBI. The RBI in its PA/PG guidelines said anti-money-laundering, combating financial terrorism and know-your-customer guidelines will be applicable to these entities. Large payment players like Razorpay, Cashfree, PhonePe and Pine Labs have received in-principle approval from the Reserve Bank of India to operate as payment aggregator. Many others were not sure if they needed to, this judgement brings clarity,” said another executive. “The central bank mandated PA and PGs (payment aggregators and payment gateways) to be compliant with PML Act 2002, so those companies who have received in-principle approval would have already set it up. However, most of the players have received only in-principle approval as of now to operate as payment aggregators. ![]() Payment applications which are in the process of becoming payment aggregators or payment gateways have already started reporting suspicious transactions to the ministry, as guided by the newly formed regulations. ![]() “Many large payment companies were already reporting to the Financial Intelligence Unit under the finance ministry, but they were doing it to be on the right side of the law as of now there was no mandate to do so,” one of the executives said on the condition of anonymity. With payments being a low-margin business, such issues will make many small businesses unviable and also spoil user experience, industry executives said. ![]() Given banks and payment companies undertake their own KYC checks, to mandate even technology service providers to do the same will increase cost of compliance. Another senior legal counsel told ET that such a judgement is a bit far fetched. ![]()
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