PayPal Holdings, Inc. has submitted applications to state and federal regulators to establish PayPal Bank, a proposed Utah-chartered industrial loan company. This move aims to increase the efficiency of its small business lending operations in the U.S. and allow the company to offer interest-bearing savings accounts.
Quick Intel
PayPal applies to form a Utah-chartered industrial loan company called PayPal Bank.
The primary goal is to provide small business lending solutions more efficiently.
It would reduce PayPal's reliance on third-party banking partners for lending.
The bank plans to offer interest-bearing savings accounts to customers.
Customer deposits would be FDIC-insured upon regulatory approval.
Mara McNeill, former CEO of Toyota Financial Savings Bank, is set to lead the entity.
Streamlining Small Business Lending
PayPal has facilitated over $30 billion in loans and working capital to businesses globally since 2013. Establishing its own industrial bank is a strategic step to bring more of this lending activity in-house for U.S. customers, aiming to reduce operational complexity and costs while strengthening its core business offerings.
"Securing capital remains a significant hurdle for small businesses striving to grow and scale," said Alex Chriss, President and Chief Executive Officer, 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."
Expanded Financial Services
Beyond lending, the proposed bank intends to offer interest-bearing savings accounts, providing a new deposit product for PayPal's customer base. It would also seek direct membership with card networks, complementing its existing payment processing and settlement infrastructure.
Leadership and Regulatory Path
Mara McNeill, with over 25 years of banking and financial services experience, has been selected to serve as President of the proposed entity. The applications are now subject to review by the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC), with approval required before operations can commence.
This initiative represents PayPal's latest effort to deepen its integration into the financial services ecosystem, moving beyond payments and money movement to embed lending and deposit-taking capabilities directly within its platform.
About PayPal
PayPal has been revolutionizing commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy.
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