PayPal Holdings, Inc. (NASDAQ: PYPL) is taking a major step toward owning its banking infrastructure, filing applications with the Utah Department of Financial Institutions and the FDIC to establish PayPal Bank, a Utah-chartered industrial loan company.

Since 2013, PayPal has provided more than $30 billion in loans and working capital to over 420,000 businesses worldwide. The proposed bank would allow PayPal to deliver business loans directly, reducing reliance on third-party lenders while potentially improving efficiency and control.

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

Beyond Lending: A Broader Banking Play

PayPal Bank plans to offer interest-bearing savings accounts, providing an additional banking service to its customers. The bank would also aim for direct membership with card networks, complementing its existing payment processing and settlement capabilities. Deposits, if approved, would be FDIC-insured, a notable reassurance for small businesses and individual customers alike.

Leadership with Deep Banking Experience

Mara McNeill, former President and CEO of Toyota Financial Savings Bank, has been named President of PayPal Bank. With over 25 years of experience in banking, commercial lending, and private equity, she will lead the bank’s launch and operations.

Implications for the FinTech Sector

By controlling its own banking operations, PayPal could accelerate small business lending, improve profit margins, and increase operational resilience. The move also aligns with a growing trend of fintech giants, including Square/Block and Robinhood, seeking bank charters to expand services and reduce dependence on traditional banking partners.

However, PayPal’s bank launch remains conditional on regulatory approval, and timelines for full operation are uncertain. Forward-looking statements in PayPal’s filings caution investors that approvals may not materialize and anticipated benefits could vary.