Without the possibility of storing a balance in the service, all transfers that we receive through PayPal will be sent directly to our bank. And of course, if this is done through a currency different from that of our institution, the respective commission will be charged.
Everything to adapt to the Fintech Law
At the time we contacted PayPal to learn more details of these changes, and they confirmed that in effect, in Mexico the service will only be left with the functions of payment aggregator. That is, it will only be an intermediary to carry out the transactions.
The same company has confirmed that this decision was taken in order to “comply with all legal requirements” of the laws in force in Mexico. Recall that in 2018 the Fintech Law came into force, which seeks to regulate electronic purses, cryptocurrencies, and even crowdfunding services.
It should be noted that if they have a balance on the platform (which has been transferred before September 25), they will no longer be able to use it to purchase products or services, this will be automatically transferred to the bank account that we have linked.
Then we leave the official position of PayPal before this movement:
As a global payment company, we adhere to all applicable laws and regulations, and as such, we must also comply with certain rules determined by organizations with which we are associated, such as payment networks and processors. In accordance with the laws in force in our country, PayPal Mexico has decided to remain as an aggregator. In order to comply with all legal requirements, we are making some changes; As of September 25, our users will no longer be able to use their PayPal balance to make purchases online. To use such money, the only option will be to make an automatic transfer to a registered bank account.