Story perspectives

PayPal Seeks Approval for New Bank to Boost Lending

12/16/2025

Summary

Story summary

PayPal Holdings Inc. applied to establish PayPal Bank, a Utah-chartered industrial loan company, to enhance lending services for U.S. small businesses.
CEO Alex Chriss stated the initiative aims to improve efficiency and reduce reliance on third-party banks.
Since 2013, PayPal has issued over $30 billion in loans to more than 420,000 businesses.
The proposed bank will offer interest-bearing savings accounts and seek direct membership with U.S. card networks.
Mara McNeill, former CEO of Toyota Financial Savings Bank, will lead PayPal Bank, which will provide FDIC insurance for customer deposits if approved.

History

Historical Context

The Financial Services Regulatory Relief Act of 2006 eased regulations for financial institutions, paving the way for fintech innovations like PayPal. Since then, PayPal has issued over $30 billion in loans to more than 420,000 businesses, reflecting its growing influence in small business financing. The establishment of PayPal Bank further enhances lending efficiency, signaling a shift away from traditional banking models.

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Story summary

PayPal Holdings Inc. applied to establish PayPal Bank, a Utah-chartered industrial loan company, to enhance lending services for U.S. small businesses.
CEO Alex Chriss stated the initiative aims to improve efficiency and reduce reliance on third-party banks.
Since 2013, PayPal has issued over $30 billion in loans to more than 420,000 businesses.
The proposed bank will offer interest-bearing savings accounts and seek direct membership with U.S. card networks.
Mara McNeill, former CEO of Toyota Financial Savings Bank, will lead PayPal Bank, which will provide FDIC insurance for customer deposits if approved.

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