They have been licensed and incorporate APIs into the operation to allow banking services.
A lot of brands are including financial services in their customers’ experiences. The brands that benefit from this opportunity include Google money as well as Apple cards. Since they don’t require infrastructure to create financial products, these companies are in a position to develop better and cheaper ones.
There are regional variations in the way banking as a service is provided in the different locations. The Durbin Amendment was introduced in the United States after the financial crisis. The legislation regulates how the banking service is operated in the USA and nowhere else. Smaller banks are able to charge retailers a percentage for each transaction , allowing establishments to receive payments.
Banks face the choice of whether to partner with brands, or establish a bank that is solely a service company. Some banks have already taken advantage of this opportunity which has allowed them to create a more disruptive product. 8gmddf2v3h.