eBay’s PayPal service gets European License

PayPal has some good news for their users as they have just received a banking license to operate in Europe.

This would help them to accelerate the adoption of its online payment services in European nations.

PayPal said that they were granted the license by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg and it is applicable starting from July 2.

They are now planning to move its European headquarters to Luxembourg from Britain. Without this license, the company was working as an electronic money issuer in the European nations which prevented them from selling its services directly to merchants in individual countries due to regulatory restrictions.

Incidentally, this announcement came just around a month after search engine giant Google announced Google Checkout for merchants in the U.K. Google’s Checkout service seems to be the only potential rival to the eBay’s PayPal

PayPal added that despite getting this license they have no plans to offer traditional banking services in Europe.

Checkout: PayPal | Google Checkout