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Companies like Square and Adyen and Paypal are flourishing. They facilitate payments between people and business in various currencies and provide small loans. However as they are not banks they are not regulated as banks (Basel requirements).

In this cash management business where does the market risk come from (ie what would be the contributors to VaR)?

Thinking out loud I imagine from FX risk, for the short term loans (overdrafts) I am not sure (modeled as bonds with very short duration?), and if they do money market placements I am unsure either?

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