Companies that handle your money have a responsibility to their shareholders. They need to pay out dividends and increase share prices, otherwise investors might bail. Serving customers neutrally is risky, because at least some of them might use their service in ways that produce really bad PR.

PayPal has one of the worst reputations in the world and its centralized business model poses a threat to all users.

Companies that handle your money have a responsibility to their shareholders. They need to pay out dividends and increase share prices, otherwise investors might bail. Serving customers neutrally is risky, because at least some of them might use their service in ways that produce really bad PR.

PayPal’s terms of service redefines what money means. Its narrow acceptable use policy makes money function as a permissioned tender. You cannot use your funds however you want. PayPal has a broad definition for which payments require pre-approval and which ones are not allowed at all. It isn’t the only financial company susceptible to the failures of centralization, but it’s a perfect case study for why you shouldn’t trust any single authority when it comes to your money.