- PayPal Bank could be company’s next move in the US, subject to approvals
- SME loans and interest-bearing savings accounts are in the works
- Former Toyota CFO named bank president
PayPal has begun the formal process of opening “PayPal Bank” which it hopes will improve small business lending in the United States and reduce reliance on third-party banks.
In a press release, the company confirmed that it had “submitted requests to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation.”
To support its argument, PayPal pointed out that, since 2013, it has provided more than $30 billion in loans and working capital to more than 420,000 business accounts worldwide, and so a PayPal bank would fit in very well.
PayPal Bank could be next, subject to approvals
“Obtaining capital remains a significant barrier for small businesses striving to grow and expand,” said CEO Alex Chriss. The company hopes that banking under its own name would strengthen its operations, improve efficiency and open new economic opportunities in the United States.
The bank is also expected to offer interest-bearing savings accounts to its customers and seek direct membership with U.S. card networks “to complement processing and settlement activities through existing banking relationships.”
Former Toyota Financial Savings Bank CEO Mara McNeill has been named president of PayPal Bank.
The application will be subject to regulatory approval, but investors appear satisfied, with shares rising about 1.5% in extended trading following the announcement.
This is not the only news announced by PayPal regarding the expansion of its payment networks. Recently in the UK, the company announced that it would offer credit cards, debit cards and loyalty points to UK customers.
At the time, Consumer Group chief executive Diego Scotti said the company responded to customer feedback to launch the new products.
“We have returned to growth in the business and are on track for transaction margin dollar growth of 6-7% in 2025 excluding interest on customer balances,” Chriss said, speaking about the company’s most recent quarterly results. “It’s a stronger company today than it was two years ago.”
PayPal also plans to adopt agentic AI more broadly, partnering with companies like Google, OpenAI and Perplexity.
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