PayPal is pursuing a formal banking license in the United States. The company submitted applications to US regulators, aiming to create a new financial institution called PayPal Bank.
The applications were filed with the Federal Deposit Insurance Corporation and Utah’s Department of Financial Institutions. Approval would grant PayPal a state charter in Utah as an industrial loan company.
This step is a natural evolution for the digital payments firm. Known for services like online checkout and Venmo, PayPal is now seeking a deeper role within the regulated financial system.
Company leadership stated the primary focus will be on lending. In an official announcement, CEO Alex Chriss said the bank would enhance PayPal’s ability to provide support and economic opportunities to small businesses across the country.
PayPal has already extended considerable financing through its existing platforms. Since 2013, the company has provided access to more than 30 billion dollars in loans and capital to merchants and consumers.
The move occurs within a shifting regulatory landscape. Federal authorities have recently shown greater openness to technology companies entering the traditional banking sector.
If approved, PayPal Bank would allow the company to manage loans and deposits directly. This could lead to more streamlined financial products for its large base of users and business clients.