- PayPal Bank could be the company’s next step in the US, subject to approvals
- SME loans and interest-bearing savings accounts are in the pipeline
- Former Toyota financial executive named bank president
PayPal has begun the formal process to open “PayPal Bank,” which it hopes will improve lending to small businesses in the U.S. and reduce reliance on outside banks.
In a press release, the company confirmed that it had “submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation.”
To support its case, PayPal highlighted that, since 2013, it has provided more than $30 billion in loans and working capital to more than 420,000 merchant accounts worldwide, so a PayPal bank would be a pretty good fit.
PayPal Bank could be next, subject to approvals
“Raising capital remains a major hurdle for small businesses striving to grow and scale,” said CEO Alex Chriss. The company hopes that a bank with its own brand will strengthen its business, improve efficiency and open new economic opportunities throughout the United States.
The bank is also expected to offer interest-bearing savings accounts to its customers and seek direct membership in US card networks “to complement processing and settlement activities through existing banking relationships.”
Former Toyota Financial Savings Bank CEO Mara McNeill has been named president of PayPal Bank.
The application will be subject to regulatory approval, however investors appear to be happy, with shares rising about 1.5% in extended trading following the announcement.
This is not the only news that PayPal has announced about an expansion of its payment networks. Recently in the UK, the company stated that it would offer credit cards, debit cards and loyalty points to British customers.
At the time, Consumer Group general manager Diego Scotti stated that the company had responded to customer feedback to launch the new products.
“We have returned the company to growth and are on track to achieve transaction margin dollar growth of 6% to 7% in 2025, excluding interest on customer balances,” Chriss said, discussing the company’s most recent quarterly earnings. “This is a stronger company today than it was two years ago.”
PayPal also plans to adopt agent AI more broadly, partnering with companies like Google, OpenAI, and Perplexity.
Follow TechRadar on Google News and add us as a preferred source to receive news, reviews and opinions from our experts in your feeds. Be sure to click the Follow button!
And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form and receive regular updates from us on WhatsApp also.
