|Wells Fargo will be PayPal's new payment provider on Internet payment processing services. |
PayPal's business is made up of transactions between businesses and consumers through online casinos, online shopping and online auction sites. Money is directly transferred to the recipient's account using Wells Fargo's services.
Lauren Weinstein, co-founder of the People For Internet Responsibility said there seems to be a definite niche for such third-party transaction services to meet the needs of users of online outlets and that an institution such as Wells Fargo increases customer confidence in the process. But there are still many consumers wary of conducting credit card transactions online, she said.
Previously, PayPal used the Electronic Payment Exchange, a unit of InterCept Inc., Atlanta , as its credit card transaction processor.