Partnership Agreement between PayPal and The Bancorp Bank
- During the Payments 2012 conferences (29 April to 2 May), PayPal and the online commercial bank specialising in prepaid solutions, The Bancorp Bank (subsidiary of The Bancorp) announced a partnership to develop P2P funds transfers based on PayPal Send Money for Financial Institutions. This platform will enable banks that are customers of Bancorp to offer this type of functionality to their customers.
- Other proposed services include Instant Account Creation enabling users to add a credit or debit card to a PayPal account, which users can add credit funds to at a later date using the online banking service: this is a first in the United States. New customers can also credit their new account by transferring funds from a PayPal account.
Source: Press release by The Bancorp Bank
- This type of agreement reflects PayPal’s intention to work more closely with banks in order to further their common interests. Others partnerships are planned. PayPal and Bancorp also plan to collaborate on other projects in 2012. PayPal is banking on innovation and Bancorp is the key partner for a number of new "banking sector start-ups" like Simple or MoveNbank.
- Bancorp is the first American banking institution to propose Instant Account Creation, which has already been introduced by some Spanish banks such as La Caixa for example.
- In addition, at the beginning of March, The Bancorp Bank Payment Solutions Group, subsidiary of The Bancorp Bank, announced that it had been chosen to issue PayPal's Prepaid MasterCard in the United States.