There has been lots of worry spent on Wal-Mart and Home Depot stepping deeper into financial services. But what about PayPal? The online payments firm has been a big win for eBay. Now it's eyeing its second act, which requires it to act more like a bank, according to Business Week Online. In Europe, it has already picked up one banking license. Also, it has been testing a virtual debit card for online use. The service will debut before the Holiday season. The service has also been paying interest, at a lofty rate, for while now. And it offers nonvirtual credit cards via an alliance with GE Consumer Finance. It will be interesting to see if other banks, with their eyes on online commerce, follow suit. And you have to wonder how Google will respond--it may respond by upgrading and promoting its Checkout service.  

For more:
- here's the article from Business Week Online