PayPal Holdings Inc. has applied for regulatory approval to establish a bank in the United States, marking a major step in expanding its financial services for small businesses.
The company disclosed on December 15, 2025, that it has filed applications with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to set up PayPal Bank, a Utah-chartered industrial loan company.
PayPal said the move is aimed at deepening its business lending operations and reducing reliance on third-party financial institutions. Since 2013, the company has provided more than $30 billion in loans and working capital to over 420,000 business accounts worldwide.
Alex Chriss, PayPal President and CEO, said access to funding remains a key challenge for many entrepreneurs. “Establishing PayPal Bank will improve our efficiency and allow us to better support small business growth and economic opportunity across the U.S.,” he said.
Beyond lending, the proposed bank would offer interest-bearing savings accounts and seek direct membership with U.S. card networks to support payment processing and settlement. If approved, customer deposits would be insured by the Federal Deposit Insurance Corporation (FDIC).
PayPal also named Mara McNeill as President of the proposed bank. McNeill has more than 25 years of experience in financial services and previously served as President and CEO of Toyota Financial Savings Bank.
The company cautioned that the plan is subject to regulatory approval and that the anticipated benefits may not materialise if approvals are not granted or conditions change.
