US EditionPayments firm PayPal files for bank charter in lending push
PayPal aims to boost small business lending and offer interest-bearing savings accounts, having provided over $30 billion in loans to 420,000 businesses since 2013, the company said.
- On Dec. 15, 2025, PayPal Holdings, Inc. filed applications with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to form PayPal Bank, a proposed Utah-chartered industrial loan company.
- To broaden services for U.S. small businesses, PayPal seeks the charter so it can expand loans and interest-bearing savings accounts, saying "Securing capital remains a significant hurdle for small businesses striving to grow and scale" .
- Mara McNeill was named PayPal Bank's president, with over 25 years' experience and former CEO of Toyota Financial Savings Bank; PayPal Bank would seek direct U.S. card-network membership and FDIC insurance for deposits.
- Shares of PayPal rose 1.5% in extended trading following the announcement, but the release cautioned that regulatory approval may not be obtained and highlighted forward-looking statements risks.
- The charter would position PayPal amid fintechs moving into banking, as PayPal said it would pursue new opportunities and bolster business with new revenue streams while new ties to card networks would complement banking partners.
65 Articles
65 Articles
PayPal Plans to Open Industrial Bank to Serve Small US Businesses
PayPal Holdings Inc. recently announced plans to open a bank that would serve small businesses nationwide. A global online payment system, PayPal has already submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to set up PayPal Bank, a proposed Utah-chartered industrial loan firm. “Securing capital remains a significant hurdle for small businesses striving to grow and scale,…
PayPal plans to launch bank serving small businesses around the US
PayPal announced this week that it submitted regulatory applications to create PayPal Bank, a new industrial loan company to support small businesses.The company said Monday that it filed documents with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to launch PayPal Bank. PayPal said that the bank would allow the firm to provide lending solutions for small businesses, as well as interest-bearin…
PayPal officially submitted an application to the North American authorities for the creation of “PayPal Bank”. This new entity, if approved, will allow the company to pass on its traditional role as payment processor and...
Trump era opens banking license for fintechs
The News“It’s not the plan,” PayPal’s CEO said in April when Semafor asked him whether the fintech giant planned to turn itself into a regulated bank. “We’ve kept it very balance-sheet-light, and we’ll let banks do what banks do really well.”Fast forward eight months and PayPal is becoming a bank. The company applied to Utah’s state regulators for a slimmed-down license that would allow it to take federally insured deposits and make loans to its…
PayPal wants to become a bank in the US
The San Jose-based firm submitted applications to both the Federal Deposit Insurance Corporation and the Utah Department of Financial Institutions to form an industrial loan company chartered in Utah. The proposed entity, to be known as PayPal Bank, would allow the company to expand its small-business lending operations and offer...Read Entire Article
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