PayPal is seeking to establish itself as a bank in the United States. The company has submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to create PayPal Bank, which would operate as a chartered industrial loan company based in Utah.
According to PayPal, this move aims to enhance its business operations and improve efficiency, allowing it to better support small business growth and economic opportunities across the country. In addition to offering small business loans, PayPal Bank would provide interest-bearing savings accounts and join card networks in the U.S. to complement its processing and settlement activities.
Since 2013, PayPal has facilitated access to over $30 billion in loans and working capital for more than 420,000 business accounts globally. The proposed bank is expected to enable more efficient business lending solutions for small businesses in the U.S., reducing reliance on third parties and strengthening PayPal’s overall business model.
If approved, customer deposits at PayPal Bank would be eligible for FDIC insurance coverage.
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