PayPal Holdings, Inc. has submitted applications to U.S. regulators to establish PayPal Bank, a proposed Utah-chartered industrial loan company, marking a step toward bringing more of its small-business financial services in-house. The filings were made with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation, and would allow PayPal to operate a regulated banking entity focused on business lending. Since 2013, the company has provided more than $30 billion in loans and working capital to over 420,000 businesses globally, primarily through partnerships with third-party banks.
If approved, PayPal Bank would support small-business lending more directly, reduce reliance on external banking partners, and expand PayPal’s control over funding, settlement, and product economics. The proposed bank is also expected to offer interest-bearing savings accounts and seek direct membership with U.S. card networks, potentially simplifying processing and settlement flows. Customer deposits would be eligible for FDIC insurance, and PayPal has named veteran banking executive Mara McNeill as president of the proposed bank. The move reflects a broader shift among large fintech platforms toward regulated banking structures as they look to scale lending, improve margins, and strengthen their role in the financial services stack.
