Overview
- PayPal filed applications with the Utah Department of Financial Institutions and the FDIC to create PayPal Bank as an industrial loan company.
- Plans for the proposed bank include small-business loans, interest-bearing savings accounts, and pursuit of direct membership in U.S. card networks.
- Customer deposits would qualify for FDIC insurance only if state and federal approvals are granted.
- PayPal named Mara McNeill as the proposed bank's president, highlighting her prior role leading Toyota Financial Savings Bank.
- Shares rose in after-hours trading following the announcement, which outlets framed as part of a wider push by fintech and crypto firms for charters under a looser regulatory climate.