PayPal has submitted applications to establish PayPal Bank in the United States, aiming to better support small businesses with financial services. The company, already a registered bank in Europe, seeks approval from the Federal Deposit Insurance Corporation and the Utah Department of Financial Institutions. If approved, the bank would be chartered in Utah and offer interest-bearing savings accounts.
On December 16, 2025, PayPal announced it had filed applications with the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions (UDFI) to create PayPal Bank. This move targets small businesses, which PayPal says face significant hurdles in securing capital for growth. The company has already provided over $30 billion in loans and working capital to more than 420,000 business accounts worldwide.
PayPal's president and CEO, Alex Chriss, emphasized the initiative's focus in a statement: "Securing capital remains a significant hurdle for small businesses striving to grow and scale." He added, "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."
PayPal operates as a bank in Luxembourg, Europe, and plans to introduce interest-bearing savings accounts in the US if the charter is granted in Utah. This application comes amid a surge in companies seeking banking status under the Trump administration's reportedly looser financial regulations. For instance, on December 13, 2025, the Office of the Comptroller of the Currency (OCC) conditionally approved five cryptocurrency firms—BitGo, Circle, and Ripple among them—as federally chartered trust banks.
OCC Comptroller Jonathan V. Gould welcomed such developments: "New entrants into the federal banking sector are good for consumers, the banking industry and the economy. They provide access to new products, services and sources of credit to consumers, and ensure a dynamic, competitive and diverse banking system."
Other firms, including Nissan and Sony, have also applied to form banks this year, reflecting broader industry trends toward integrated financial services.
