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Digital payment tools used to just help people move money from one place to another quickly. That was their main job. Money did not stay in those systems for very long.

Now, some payment services let people keep money in accounts on their platform, even when they are not spending it right away. When a service holds money this way, it starts to look more like a bank account than just a payment tool.

This matters because bank accounts and payment tools are treated differently by financial rules. Banks must follow strict rules about how they keep money, how safe it is, and how payments are made. Payment tools have not always been treated that way.

For readers, the…

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