If approved by regulators, deposits could receive FDIC protection
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PayPal has applied to create its own bank, filing with Utah regulators and the FDIC to establish PayPal Bank, an industrial loan company.
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The move would streamline small-business lending, building on more than $30 billion PayPal has already provided to businesses worldwide since 2013.
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The proposed bank could also offer FDIC-insured savings accounts, expanding PayPals financial services footprint in the U.S.
PayPal started life as a payment app, but it has bigger ambitions. The company is taking a major step toward becoming a more traditional financial institution, announcing plans to establish PayPal Bank, a Utah-chartered industrial loan company.
The digital payments giant has submitted applications to both the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation, seeking regulatory approval to move forward.
If approved, PayPal Bank would allow the company to deliver small-business lending more directly and efficiently in the United States. PayPal says the bank would reduce its reliance on third-party financial institutions while strengthening its core business and expanding economic opportunities for entrepreneurs.
Significant small business lender
PayPal has been a significant lender to small businesses for more than a decade. Since 2013, the company has provided over $30 billion in loans and working capital to more than 420,000 business accounts globally. According to the company, those funds have helped small businesses grow, purchase inventory, and invest in staff and technology areas where access to traditional bank financing can be limited.
Securing capital remains a significant hurdle for small businesses striving to grow and scale, said Alex Chriss, PayPals president and chief executive officer. 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.
Beyond lending, PayPal Bank is expected to offer interest-bearing savings accounts to customers. The bank would also pursue direct membership with U.S. card networks, complementing PayPals existing processing and settlement activities and further integrating its payments ecosystem.
Customer deposits held at PayPal Bank would be eligible for FDIC insurance if the bank receives regulatory approval, providing an added layer of security for consumers.
Posted: 2025-12-17 12:28:41















