PayPal Applies for a US Banking License as the Regulatory Door Opens
Hey Digital Banking Fanatics!
PayPal just applied to become a bank in the US.
The payments giant filed applications with regulators to form a Utah-chartered industrial loan company as FinTechs get a warmer reception in Washington.
The move comes as the US loosens its stance on new bank entrants. Under the current administration, approvals are suddenly back on the table, and PayPal wants in.
If cleared, PayPal Bank would deepen the firm’s small-business lending push. The company says it has already facilitated more than $30B in loans and capital since 2013, and this structure would take that further.
In remarks provided in a statement, PayPal CEO Alex Chriss noted: “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.”
If approved, the bank would be led by Mara McNeill, a veteran banking executive and former head of Toyota’s financing arm. She stated: "PayPal Bank will operate with a clear mission, strong governance, and a lending strategy designed to responsibly serve small businesses in Utah and across the country."
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NEWS
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