The payments provider is arguing that the regulator has dismissed its arguments that digital wallets do not operate in the same way as reloadable debit cards. As a result, PayPal says the agency’s guidelines are forcing it to be “misleading and confusing” to customers about its credit products.
The issue lies in the fact PayPal’s service bridges both the digital wallet and prepaid card spaces. Users can link credit cards to accounts like a digital wallet, but they can also store money in their account like a prepaid card account.
