posted on December 22, 2000 08:38:24 AM new
PALO ALTO, Calif. (AP) - PayPal, an Internet-based "digital cash" payment network, will begin issuing MasterCard debit cards to its customers, the company said Thursday.
PayPal's 5 million users will now be able to untether themselves and their cash from the computer to make their purchases.
To date, PayPal members have primarily used the system to conduct online auction transactions.
A buyer using PayPal provides a credit card or bank account number so PayPal can withdraw a specified amount. The seller is then notified by e-mail and has the option of either cashing out or carrying a digital cash balance to conduct other online business.
PayPal accounts aren't insured by the Federal Deposit Insurance Corp. like banks, but the company does offer up to $100,000 in insurance coverage per account.
