Story perspectives

PayPal Applies for Bank Charter to Boost Lending

12/18/2025

Summary

Story summary

PayPal has applied to establish PayPal Bank, a Utah-chartered industrial loan company, to expand lending.
The applications target Utah Department of Financial Institutions and Federal Deposit Insurance Corporation (FDIC).
If approved, PayPal Bank will let PayPal provide loans directly.
Mara McNeill has been appointed bank president.
CEO Alex Chriss said the move will broaden small-business growth, noting PayPal has issued over $30 billion in loans to 420,000 accounts since 2013.

History

Historical Context

The Dodd-Frank Act, enacted in 2010 in response to the 2007-2008 financial crisis, aimed to enhance oversight of financial institutions. This legislation significantly impacted companies like PayPal, which, after obtaining a Luxembourg banking license in 2008, sought to expand its services by applying to create PayPal Bank, potentially transforming small-business financing and digital banking landscapes.

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Story summary

PayPal has applied to establish PayPal Bank, a Utah-chartered industrial loan company, to expand lending.
The applications target Utah Department of Financial Institutions and Federal Deposit Insurance Corporation (FDIC).
If approved, PayPal Bank will let PayPal provide loans directly.
Mara McNeill has been appointed bank president.
CEO Alex Chriss said the move will broaden small-business growth, noting PayPal has issued over $30 billion in loans to 420,000 accounts since 2013.

1 / 2