PayPal Holdings has submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation seeking approval to establish PayPal Bank. This proposed Utah-chartered industrial loan company would deepen the fintech giant’s role in small business financial services in the United States.
The company said the proposed bank would help it provide business lending solutions to U.S. small businesses more efficiently by reducing reliance on third parties and strengthening PayPal’s underlying economics for credit and related services. PayPal framed the move as a continuation of a lending business it began more than a decade ago, noting it has provided access to more than $30 billion in loans and working capital to hundreds of thousands of business accounts since 2013.
Beyond small business lending, PayPal said PayPal Bank expects to offer interest-bearing savings accounts to customers. The proposed bank would also seek direct membership in U.S. card networks to complement its processing and settlement activities that currently run through existing banking relationships.
If regulators approve the charter and related applications, PayPal said customer deposits at PayPal Bank would be eligible for FDIC insurance coverage. The company also named a prospective leader for the bank, selecting financial services executive Mara McNeill to serve as President of PayPal Bank, citing her experience across banking, commercial lending, and private equity, including her prior role as President and CEO of Toyota Financial Savings Bank.
PayPal emphasized that the plan remains subject to regulatory review and customary approvals, and it cautioned that anticipated benefits may not materialize if approvals are not obtained.
KEY QUOTES:
“Securing capital remains a significant hurdle for small businesses striving to grow and scale. Establishing PayPal Bank will strengthen our business and improve our efficiency, enabling us to better support small business growth and economic opportunities across the U.S.”
Alex Chriss, President and Chief Executive Officer, PayPalx
