As reported last week by VentureBeat PayPal is testing ATM functionality through their partnership. Using the coinstar machines located in Walmarts, Safeways, Target. Dan Schatt, PayPal’s General Manager of Financial Innovation demonstrates the machine on this YouTube video – http://tinyurl.com/d34wonq .
Just like your typical ATM you will be able to deposit or withdraw cash from your (PayPal) account. But unlike ATMs you will be able to deposit coins which will be counted at the time of deposit. The machines are currently being piloted in the Dallas, Texas area.
It’s a little worrisome that phisher of PayPal accounts may be able to use this information to pull cash directly from accounts but I’m confident PayPal address any security issue.
PayPal is very close to providing full service features to the unbanked and competing with the likes of GreenDot and Bluebird. Once the ATM functionality is broadly available will PayPal’s next move be to push consumers to start direct depositing paychecks into their PayPal account?