9 months ago
PayPal Seeks Banking Charter for US Expansion
PayPal, a big company that helps people pay for things online, wants to start its own bank called PayPal Bank.
They asked the government in Utah and a group called the FDIC for permission.
If they get it, PayPal Bank will give loans to small businesses and offer savings accounts.
This will help small businesses get money more easily.
PayPal has already given out $30 billion in loans to over 420,000 businesses since 2013.
The bank will also protect people's money up to $250,000.
A woman named Mara McNeill, who has worked in banking for a long time, will be in charge of PayPal Bank.
PayPal has applied for a banking charter to establish PayPal Bank in Utah.
The bank aims to expand lending solutions and offer interest-bearing savings accounts.
PayPal has extended $30 billion in loans to over 420,000 businesses since 2013.
Customers will be eligible for FDIC insurance coverage up to $250,000.
Mara McNeill, with over 25 years of banking experience, will lead PayPal Bank.
- Who
- PayPal Holdings, Inc.
- What
- Application for a banking charter to establish PayPal Bank
- Where
- United States, Utah
- When
- 15 December 2023
- Why
- To expand lending solutions and reduce small businesses' reliance on third-party lenders
Key facts
- Company
- PayPal Holdings, Inc.
- Application Submitted To
- Utah Department of Financial Institutions and FDIC
- Proposed Bank Name
- PayPal Bank
- Loan Amount Extended
- $30 billion
- Number of Business Accounts
- 4,20,000
- FDIC Insurance Coverage
- $250,000 per person per bank
- President of PayPal Bank
- Mara McNeill
- Charter Type
- Industrial loan company
Quotes
PayPal Holdings, Inc.
Global online payments giant
“PayPal Holdings, Inc. (NASDAQ: PYPL) today announced it has submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to establish PayPal Bank, a proposed Utah-chartered industrial loan company.”
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Alex Chriss
President and Chief Executive Officer, PayPal
“Establishing PayPal Bank will strengthen our business and improve our efficiency, enabling us to better support small business growth and economic opportunities across the US.”
livemint.com
Federal Deposit Insurance Corporation
US banking regulator
“Depositors may qualify for coverage over $250,000 if they have funds in different ownership categories and all FDIC requirements are met.”
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