PayPal Submits Application to Establish PayPal Bank

PayPal has officially submitted applications to establish PayPal Bank in the United States, aiming to offer small business loans and interest-bearing savings accounts to its customers. This move reflects the company’s ambition, which also owns Venmo, to expand its banking services and compete with traditional banks, 27 years after its founding.

“Securing capital remains a significant hurdle for small businesses striving to grow and scale,” said Alex Chriss, President and CEO of PayPal. “Establishing PayPal Bank will strengthen our business and improve efficiency, enabling us to better support small business growth and economic opportunities across the U.S.”

In addition to small business lending solutions, PayPal Bank plans to offer interest-bearing savings accounts and seek direct membership with card networks in the U.S. to complement payment processing and settlement activities. If approved, customer deposits would be covered by FDIC insurance. Mara McNeill has been appointed as President of PayPal Bank, bringing over 25 years of experience in financial services, commercial lending, and private equity.