PayPal Want to Be a Bank In The United States

Wednesday, 17 December 2025 at 02:57

PayPal revolutionized the world of digital payments in its early days and still stands as one of the most reliable ways to make online transactions. Now, the company wants to take a bold step in the US, becoming a full-fledged bank. The company submitted the required applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to establish PayPal Bank. The bank aims to be a Utah-based chartered industrial loan company.

PayPal Wants To Strengthen Its Business in the Country

According to PayPal, this move will strengthen its business and improve efficiency. The brand's goal is to enable it to "better support small business growth and economic opportunities across the US". The company will provide small business loans and offer interest-bearing savings accounts to its customers. Moving on, it aims to become a member of card networks in the US to complement processing and settlement activities through existing banking relationships.

The company states that since 2013, it has "provided access to over $30 billion in loans and working capital to more than 420,000 business accounts worldwide". This proposed bank will allow it to "provide business lending solutions more efficiently to small businesses in the US. It will reduce reliance on third parties and strengthen PayPal's business".

If the authorities approve the establishment of PayPal Bank, customer deposits would be eligible for FDIC insurance coverage.

Highlights

PayPal plans to become a full-fledged bank in the US
The company filed applications with Utah regulators and the FDIC
PayPal Bank would operate as a Utah-based industrial loan company
The move aims to improve efficiency and reduce reliance on third-party banks
Focus on supporting small business growth across the US
Plans include small business loans and interest-bearing savings accounts
PayPal wants to join the US card networks for processing and settlement
Since 2013, PayPal has provided over $30 billion in loans to 420,000+ businesses
FDIC insurance would apply to customer deposits if approved
Final approval is still pending from the US authorities

For now, US residents can only wait to see if the company will be able to strenghten its businesses in the country and become a full-fledged bank as planned.

PayPal