PayPal Applies for US Bank Charter to Expand Small-Business Lending and Offer Savings Accounts

PayPal to become a bank as PayPal Holdings Inc. announced on December 15, 2025, that it submitted applications to federal and state regulators to establish PayPal Bank, a Utah-chartered industrial loan company.

The company filed with the Federal Deposit Insurance Corp. and the Utah Department of Financial Institutions to create the entity, which would allow PayPal to hold customer deposits, extend loans directly to small businesses, and provide interest-bearing savings accounts.

If approved, deposits at PayPal Bank would qualify for FDIC insurance coverage.

PayPal has provided access to over $30 billion in loans and working capital to more than 420,000 business accounts worldwide since 2013.

The proposed bank would let the company deliver lending solutions to U.S. small businesses more efficiently and cut dependence on partner banks.

Mara McNeill, with more than 25 years of experience in banking, commercial lending, and private equity, will serve as president of PayPal Bank.

PayPal president and chief executive Alex Chriss said in a statement, “Securing capital remains a significant hurdle for small businesses striving to grow and scale.”

The company already holds a banking license in Luxembourg and operates as a credit institution in Europe.

PayPal shares rose about 1.5 percent in extended trading after the announcement.