[JumpCrisscross]

> are literally funding themselves out of deposits

No, they probably are not. It’s illegal and money transmitters are regulated.

What they are doing is collecting interest. One tends to see less scrupulous transmitters hold funds longer when rates rise. I didn’t think Stripe fell in this category, but it’s becoming difficult to say.

> good one is business selling gift cards

You’re right. (Also customer deposits.) This doesn’t apply to money transmitters, however.

[inetknght]

> It’s illegal and money transmitters are regulated.

It's only illegal if the regulator enforces action. Good luck getting regulators to enforce action on something like this.