PayPal is expanding its role in the person-to-person money transfer space through an expanded partnership with The Bancorp Bank. The partnership will facilitate money transfer through 450 of Bancorp’s affinity relationships, reaching consumers in dozens of countries.
In comments at this week’s NACHA conference, PayPal’s Dan Schatt says his company’s offering will be priced at levels “less than half of what our competitors charge,” the Credit Union Times notes. The prices consumers see will continue to be determined by financial institutions, but PayPal says it is willing to subsidize some transfers — particularly those sending money to foreign countries — as a way to establish itself as a legitimate remittance partner.
“We want financial institutions to know we are not the devil,” Schatt said, according to the report.
The partnership is an expansion of an existing relationship between two of payments’ largest players: Bancorp Bank already issues PayPal Prepaid MasterCard cards.