PayPal has filed applications with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to establish PayPal Bank, a Utah-chartered industrial loan company. This step marks PayPal’s ambition to become a regulated bank in the United States.
By obtaining a banking charter, PayPal aims to strengthen its operations and enhance efficiency, enabling it to better support small business growth and economic opportunities nationwide. PayPal Bank would provide interest-bearing savings accounts and small business loans, while also joining US card networks to improve processing and settlement services alongside existing banking partnerships.
Since 2013, PayPal has facilitated over $30 billion in loans and working capital to more than 420,000 business accounts globally. The new bank would allow PayPal to deliver business lending solutions more efficiently within the US by reducing reliance on third-party providers and reinforcing its core business model.
Upon regulatory approval, customer deposits at PayPal Bank would be protected by FDIC insurance, offering added security to users.
