PayPal Holdings Inc. announced that it has submitted applications to establish PayPal Bank, a proposed Utah-chartered industrial loan company (ILC). The applications were filed with the Federal Deposit Insurance Corp. (FDIC) and the Utah Department of Financial Institutions, marking PayPal’s ambitious push to expand lending and deposit offerings amid a more fintech-friendly regulatory environment.
The primary goal of the proposed PayPal Bank is to enhance financial services for U.S. small businesses. PayPal has already originated over $30 billion in loans and working capital to more than 420,000 business accounts globally since 2013, often in partnership with external banks. Securing an ILC charter would allow PayPal to originate loans directly, hold customer deposits, and offer interest-bearing savings accounts eligible for FDIC insurance without relying on third-party institutions.
If approved, PayPal Bank would also seek direct membership in major U.S. card networks, potentially streamlining processing and settlement while complementing existing relationships.
Leading the new entity would be Mara McNeill, selected as president of PayPal Bank. McNeill brings over 25 years of experience in banking and commercial lending, having previously served as president and CEO of Toyota Financial Savings Bank.