PayPal is registering itself as a bank and moving their headquarters to Luxembourg in order to position itself as a strong competitor against Google. I am not sure whether this means that PayPal will still be governed by US laws or otherwise.
PayPal said it was moving its headquarters to Luxembourg, where it has been awarded a banking licence. This means it will no longer be authorised by the Financial Services Authority, which has overseen PayPal since it became an Electronic Money Issuer in 2004.
PayPal has 35m customers in Europe, including 15m in Britain, which is the region’s biggest online shopper. More than half of Britain’s population is now online and more than half of British internet users have a PayPal account.
PayPal allows users to pay for goods and services online, without having to key in their card details for each purchase. The service also hides account details from retailers, for extra security.
I hope that this move would mean that PayPal will recognise Malaysian banks. If they can offer a EFT transfer to Malaysian banks, I would certainly most welcome it. I will probably retain VMI only for overseas travel.