PayPal has submitted an application to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation with the goal of establishing PayPal Bank.

The company aims to set up a Utah-chartered industrial loan company. Over the past 12 years, it has facilitated access to more than USD 30 billion in loans and working capital to over 420,000 business accounts globally. This has allowed small businesses to secure the necessary capital for scaling their operations, acquiring inventory, or investing in people and tools.

PayPal’s Proposal

The creation of PayPal Bank will allow the company to enhance its business lending solutions for small enterprises across the United States. Additionally, this move aims to reduce reliance on third parties while bolstering PayPal’s business operations.

In addition to offering business lending solutions, PayPal Bank intends to provide interest-bearing savings accounts to customers. It also plans to directly join a U.S. card network to complement processing and settlement activities through existing banking relationships.

If approved by the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation, customer deposits at PayPal Bank would be insured by the FDIC.

According to Alex Chriss, President and CEO of PayPal, the move will help small businesses access capital, allowing them to grow and benefit from economic opportunities throughout the U.S. He emphasized that this initiative is also expected to strengthen PayPal’s business and improve operational efficiency.

Prior to PayPal’s application, the Office of the Comptroller of the Currency (OCC) had provided conditional approvals for five national trust bank charter applications—Ripple, Circle, BitGo, Fidelity, and Paxos—after thorough reviews that met statutory and regulatory requirements.