Overview
- The company submitted applications to the Utah Department of Financial Institutions and the FDIC to charter an industrial loan company called PayPal Bank.
- If approved, the bank could accept FDIC-insured deposits and offer interest-bearing savings accounts to customers.
- PayPal says the charter would enable more efficient U.S. small-business lending and allow direct membership with card networks, reducing dependence on sponsor banks.
- PayPal selected Mara McNeill, formerly CEO of Toyota Financial Savings Bank, as the proposed bank’s president.
- The move aligns with a broader uptick in fintech charter pursuits, including recent OCC trust approvals for crypto firms, and the applications are now under regulatory review.