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PayPal Seeks Banking License to Fund Small Businesses
16 Dec
Summary
- PayPal has applied for approval to establish PayPal Bank.
- The new bank would offer loans and savings accounts to small businesses.
- Regulators FDIC and Utah's DFS will review the bank charter application.
PayPal has officially applied for approval to establish PayPal Bank, marking a strategic expansion into traditional banking services. This initiative seeks to strengthen the company's operational efficiency and broaden its support for small business growth and economic opportunities within the United States.
The proposed PayPal Bank would be empowered to offer crucial financial services, including loans specifically tailored for small businesses. Furthermore, PayPal aims to introduce interest-bearing savings accounts for its customers, enhancing its suite of banking-like offerings. This strategic direction reflects PayPal's commitment to competing with a rising tide of fintech companies encroaching on traditional banking territories.
The application process is now underway, with the U.S. Federal Deposit Insurance Corporation and Utah's Department of Financial Institutions set to review the proposal. News of this development saw PayPal's shares rise in extended trading, signaling investor confidence in the company's ambitious expansion plans.
