PayPal seeks U.S. approval to form bank, offer small business loans
PayPal CEO Alex Chriss speaks at Global Fintech Fest on October 7, 2025 in Mumbai, India.
Indranil Aditya | Nurfoto | Getty Images
PayPal It said on Monday that it had applied for approval to establish PayPal Bank, which could offer loans to small businesses.
“Establishing PayPal Bank will strengthen our business and increase our efficiency, allowing us to better support small business growth and economic opportunity across the United States,” said PayPal CEO Alex Chriss. expression.
PayPal said the U.S. Federal Deposit Insurance Corporation, along with the Utah Department of Financial Institutions, will review the application proposing the creation of PayPal Bank.
In the statement, it was stated that the company, which owns the popular payment application Venmo, also hopes to offer interest-bearing savings accounts to its customers. PayPal already offers credit lines to consumers and is trying to expand its range of banking-like services as it competes with a growing number of fintech companies seeking to take business from traditional brick-and-mortar banks.
PayPal shares rose 1.5% in extended trading following the announcement.
PayPal announced quarterly earnings in October increased by 7% On an annual basis, it reached $8.42 billion, a higher figure than analysts expected. But the stock is down nearly 29% in 2025, while the S&P 500 index is up almost 16% over the same period.
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