The PayPal Opportunity: Tax Refund + Direct Deposit = Big Win

in regards to how people get their tax refund checks from the government. If PayPal created a system that is nearly 100% safe in regards to setting up direct deposits, they could get a ton of assets in user accounts. Once the money is in those accounts, people will generate more transactions, which in turn, will generate more income for PayPal.

If PayPal was smart, they would create a program that has the attributes below.

  • Peace of mind for the account holder
  • Ease of use for the account holder
  • Easy to understand for the account holder
  • Safe for the account holder


PayPal should generate an account number that can only be used to move money into an account, but cannot be exploited in a way to move money out.


  • How many tax refund checks are issued per year?
    • Including people that had direct deposit set up previously?
      • These people may find PayPal to be an easier and safer way to get their money back this year.
  • How many PayPal users are there?
    • Assuming that this market is mature and that increasing business and value delivered to current customers is more important than new customer acquisition.
  • Does PayPal effectively communicate with their users?
    • Email
    • Mail (USPS)
    • Digital ads
    • Blog

Note: Perhaps I am playing it too safe, but sharing my banking info with too many entities seems increasingly risky that a someone may exploit my account.

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