|Banks that think longer hours equals innovation are sure to be unsettled as PayPal moves from all-Internet to adding a bricks-and-mortar strategy.|
After TARP, the mortgage banking crises and the demise of Goldman and all the rest, it's a lot to ask a banking investor to think in terms of the threat of technological innovation. But click on PayPal's "In Store" page and you get a feel for the bank profit-killing gun PayPal is waving around. Sign up and you will see that PayPal has managed to engineer a point-of-sale system that does away with traditional debit or credit cards. Never mind that deck of financial identity plastic. The PayPal retail product doesn't even need a smartphone -- just your phone number and an easy-to-remember PIN.