PayPal Holdings Inc. has applied to become a bank in the United States, aiming to expand its lending and savings products as US regulators show more openness toward financial-technology companies.
The payments company said it submitted applications to the Federal Deposit Insurance Corp. and the Utah Department of Financial Institutions. The filings seek approval to form a Utah-chartered industrial loan company called PayPal Bank.
If approved, the new bank would help PayPal strengthen its small-business lending operations. The company said it has provided more than $30 billion in loans and capital to businesses since 2013.
PayPal Chief Executive Officer Alex Chriss said access to funding remains a major challenge for small businesses. He said creating PayPal Bank would improve the company’s efficiency and allow it to better support business growth across the US.
The move comes as interest in bank charters has increased under the Trump administration. Several cryptocurrency firms, including Circle, Ripple, and Paxos, recently received preliminary approval to become banks. During the previous administration, few such applications moved forward.
Other major companies have also applied for similar licenses this year. These include the financing arm of Nissan Motor Co. and Sony Group Corp. of Japan.
PayPal already holds a banking license in Luxembourg. In the US, the company plans to use the new bank to offer interest-bearing savings accounts as it expands its consumer finance products.
If regulators approve the application, Mara McNeill will serve as president of PayPal Bank. She previously led the financing unit of Toyota Motor Corp.
Regulators have not yet said when a decision on PayPal’s application will be made.
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