Payment firm PayPal applies for banking charter in lending

Payments company PayPal said Monday it has filed to establish a bank in the United States, as companies rush to take advantage of a friendly regulatory environment under the Trump administration.

The San Jose, California-based company has applied to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to form an industrial lending company.

The move reflects a broader push by fintech and crypto companies to obtain banking charters to expand their operations.

If approved, this move will help PayPal strengthen its lending offering to U.S. small businesses and reduce its dependence on third parties.

“Securing capital remains a major hurdle for small businesses looking to grow and scale,” said PayPal CEO Alex Chriss.

“The creation of PayPal Bank will strengthen our business and improve our efficiency, allowing us to better support small business growth and economic opportunity in the U.S.”

PayPal also plans to offer interest-bearing savings accounts to customers. The company has provided more than $30 billion in loans and capital since 2013.

Since President Trump took office earlier this year, there has been a surge in bank charter applications as regulators usher in a deregulatory regime and take a more pro-growth line.

Last week, the Office of the Comptroller of the Coin granted crypto giants including Ripple and Circle preliminary approval to establish national trust banks, a major step that could further integrate digital assets into the banking system.

PayPal has selected Mara McNeill as president of PayPal Bank. She has more than twenty years of experience in banking and commercial lending and previously served as CEO of Toyota Financial Savings Bank.

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Published on December 16, 2025