Deutsche Bank has partnered with PayPal to offer improved payment solutions across the US, Europe, and APAC, with the bank offering withdrawals and collection solutions to PayPal.
The alliance reflects the companies' shared commitment to innovation, deepening their decade-long relationship to combine PayPal’s global reach with the bank’s experience in cash management and merchant solutions. The alliance aims to add more resiliency and diversification to PayPal’s platform, enabling it to grow the commerce solutions it delivers around the world.
Joining forces to improve capabilities
The two companies share a common goal to bring forth more developments and operational efficiencies in commerce and payments for their clients. As per their agreement, Deutsche Bank will optimise its merchant settlement and payouts solutions, as well as offer withdrawals and collections in the US for PayPal.
In Europe and the APAC region, the bank supports the online payment system with key services, building on the volume that Deutsche Bank already processes annually for PayPal, which guarantees scalability and resilience.
Both PayPal and Deutsche Bank are committed to optimising their solutions to meet the ever-evolving needs and demands of their customers and remain compliant with the global regulatory requirements of the financial industry.
This comes after PayPal submitted an application to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to create PayPal Bank, intending to establish an industrial loan company. For more than a decade, the company facilitated access to billions of dollars' worth of loans and working capital to business accounts globally. This allowed it to support SMEs requiring capital to scale their operations, acquire inventory, or invest in tools.
PayPal Bank would offer the company the ability to optimise how it delivers business lending solutions in the US, minimising reliance on third parties and further strengthening PayPal’s presence and business. Additionally, the new entity plans to offer interest-bearing savings accounts.
