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Also, can I use PayPal as a bank?

One really good thing about Paypal is that you can get paid from clients as it's a payment processor and you can hold on to the money there. So, YES! You CAN use your Paypal account as a bank account.

Subsequently, question is, is PayPal better than a bank? However Banks are much more flexible in PayPal is safe and secure but it does not have the features of a Bank and is essentially an “online” system for moving money into and out of the Account via Electronic Purchases and Sales.

Correspondingly, how is PayPal not a bank?

PayPal doesn't have a charter, thus it is not a bank, the FDIC said. "PayPal does not physically handle or hold funds placed into the PayPal service," the FDIC said in its letter. -based company is operating an illegal banking service.

Do I have to have a bank account to use PayPal?

Re: use paypal without a bank account You need to have a credit card or confirmed bank account with PayPal before you can send any payments. You can however, still receive payments. PayPal is like a bank, you need a source of funds, before you can buy anything.