PayPal Plans Its Own Bank in the USA
Digital payments giant PayPal has moved to establish its own bank in the United States, submitting the required applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). The proposed entity, to be named PayPal Bank, will be set up as a Utah-based chartered industrial loan company (ILC), according to GSM Arena.
PayPal said the initiative would strengthen its business and enhance operational efficiency, enabling the company to better support small business growth and expand economic opportunities across the United States.
Under the proposal, the new bank will offer loan facilities to small businesses and introduce interest-bearing savings accounts for customers. It will also become a member of US card networks, allowing smoother transactions and settlement processes with existing banking partners.
PayPal noted that since 2013 it has provided more than $30 billion in loans and working capital to over 400,000 businesses worldwide. Once established, the bank is expected to deliver these services more quickly and efficiently. Subject to regulatory approval, customer deposits at PayPal Bank will be covered by FDIC insurance.
