PayPal is the latest company looking to become a bank in the US. On Monday, the company announced it had submitted applications for PayPal Bank to the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions (UDFI). PayPal is already a bank in Europe, based in Luxembourg.
According to PayPal, it has provided “over $30 billion in loans and working capital” for more than 420,000 business accounts globally. PayPal puts its focus on small businesses in pitching the need for a US bank. “Securing capital remains a significant hurdle for small businesses striving to grow and scale,” Alex Chriss, president and CEO of PayPal, said in a release. “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 also plans to provide “interest-bearing saving accounts” as a bank. If approved, it would be chartered in Utah.
Applications to become a bank have popped up left and right this year, with approval odds increasing under the Trump administration. On Friday, the Office of the Comptroller of the Currency (OCC) announced that five cryptocurrency companies, including BitGo, Circle and Ripple, received conditional approval to become federally charted trust banks.
“New entrants into the federal banking sector are good for consumers, the banking industry and the economy,” the OCC’s comptroller Jonathan V. Gould stated in the announcement. “They provide access to new products, services and sources of credit to consumers, and ensure a dynamic, competitive and diverse banking system.”
Other companies such as Nissan and Sony have also submitted applications to form a bank.
