(16 December 2025 – United States) PayPal has applied to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to establish PayPal Bank, signalling a significant step towards greater control over its lending and deposit capabilities.
The proposed entity would operate as a Utah-chartered industrial loan company, allowing PayPal to expand its business lending offering while reducing reliance on third-party banking partners. To date, PayPal has provided more than US$30 billion in loans and working capital to small businesses.
“Securing capital remains a significant hurdle for small businesses striving to grow and scale,” said Alex Chriss, president and CEO of PayPal. “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 plans to offer interest-bearing savings accounts and seek direct membership with US card networks, complementing its existing processing and settlement arrangements. Subject to approval, customer deposits would qualify for FDIC insurance.
PayPal has appointed Mara McNeill, former president and CEO of Toyota Financial Savings Bank, as president of the proposed bank, underscoring its intent to build a fully regulated banking operation alongside its payments franchise.