It&#x27;s bizarre that it&#x27;s apparently less risky for PayPal to explicitly take on risk by providing a loan, than to let people have access to their own money that was never intended for PayPal in the first place.<p>I consider scenario 2 a case of PayPal stealing your money and loaning it back to you against interest. It should be illegal. The fact that this is legal is baffling to me.<p>But it seems like US law offers some perverse incentives for payment providers.