![]() But on the PayPal side, we want to offer an experience as simple as the others we already do.”Ĭarlos Nomura is the head of payments for PayPal Brazil. “The banks themselves can put some daily or monthly usage limit as yet another layer of security. These issuers account for about 70% of the country’s debit cards, but PayPal hopes to integrate even more issuers into the solution soon.Ĭarlos Nomura, head of payments for PayPal Brazil, said at a news conference on Thursday morning that the fintech solution does not require additional authentication steps, such as entering a password. The launch of PayPal’s debit solution comes from a partnership with Itaú Unibanco, Bradesco, Next, Nubank, C6 Bank, Inter, and Caixa Econômica Federal. READ ALSO: Former Paypal executive will lead Facebook Pay and WhatsApp Pay How does the PayPal solution work? The increasing offer of this payment method by fintechs that bridge virtual stores and consumers, as is the case of PayPal, is also strategic. If the consumer’s habit is already changing faster than expected before the coronavirus pandemic, what is missing for the use of debit in e-commerce to skyrocket in Brazil is the integration of more issuers (banks and fintechs who are the ones who effectively decide to grant a card to a user) and retailers to debit cards solutions. READ ALSO: Two thirds of Brazilians would like to make payments on WhatsApp, says surveyĬonsolidated data released by the Central Bank earlier this month show that the country ended 2019 with 132 million active debit cards (14% more than in 2018), and 123 million credit cards (18% more than in the previous year). But the effective use of debit cards for online purchases is still far from its potential: according to the Brazilian Association of Credit Card and Services Companies (Abecs), currently, 78% of online purchases in the country are made with credit cards and only 6.5% with debit cards. It’s natural for this to happen in a country where the number of unbanked people is still large – 45 million, according to a 2019 survey by the Instituto Locomotiva – and the access to credit is still restricted. That’s just rude, and potentially dangerous.PayPal on Thursday announced a partnership with several Brazilian banks and neobanks to offer the debit card as a payment method for online purchases made within the country.Īs LABS showed in August, the COVID-19 pandemic is accelerating the use of debit cards in Brazilian e-commerce. But no company should send cards unsolicited and require me to opt out. ![]() If I have a financial relationship with a company and it wants to offer me a credit or debit card, I can live with that. I don’t need any more sources of financial liability that I didn’t ask for. ![]() Forcing me to take action to stop one being sent is an offensive abuse of my relationship with PayPal.Įven if it’s possible to block fraudulent charges on a card like this that’s used in an unauthorized way, it would take time and effort and likely damage my credit rating. Putting all that aside, why is it my responsibility to stop PayPal from sending me a card I never asked for? I have enough credit cards. A phishing site set up at that location is well positioned to receive my PayPal credentials and run up false charges. If I mistype that web address, I might easily end up at /Nothanks, /NoThanks, or any number of other spoofed accounts. To stop the card being sent, I needed to go to /NoThanks, where it asked for my PayPal user ID and password.If I receive an email that says “Final authorization for your PayPal Business Debit Card,” I might think it’s legit and not realize that it’s actually a phishing email intended to steal my PayPal credentials. Since so many of these cards are being sent out, this increases the effectiveness of subsequent phishing emails.If I don’t notice this piece of mail or the card that subsequently arrives, and I throw it in the recycling bin, somebody could pick it up and start using it (after accessing my stolen information to authorize it).Even if it is sent to the right address, someone else at my address - a spouse, child, or tenant - could receive the card and start making charges, especially if they know enough of my personal information to authorize it.If it was sent to the wrong address, the debit card would be as well. I think this is the first piece of physical mail I ever received from PayPal.Whatever they ask for - say, a social security number - is likely information that’s easily accessible from any of the hundreds of reported security breaches. The only security in place to ensure that the person who receives the card is actually the intended recipient is the call that you would have to make to authorize it.I’m no security expert, but I can count at least a half dozen ways this is a terrible idea: PayPal is sending me a debit card unless I actively stop them. I was surprised to get the offer shown here in my mailbox.
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