PayPal Holdings (NASDAQ:PYPL) has taken a significant step toward expanding its regulated financial-services operations, filing applications on Dec. 15, 2025 with both the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to establish PayPal Bank, a Utah-chartered industrial loan company (ILC).
If approved, the new bank would give PayPal greater control over its U.S. lending infrastructure and the ability to offer FDIC-insured savings accounts, while reducing dependence on third-party financial partners.
PayPal has issued more than $30 billion in loans and working-capital advances to over 420,000 business accounts globally since 2013.
The fintech said the proposed bank would enable more efficient small-business lending, particularly in the U.S., where its existing programs rely on originating partners and bank sponsors.
The charter would also allow PayPal Bank to seek direct membership in major card networks, a strategic shift that could streamline operations and reduce transaction-processing costs.
PayPal named Mara McNeill as president of the proposed institution.
McNeill brings more than 25 years of experience in commercial lending, banking operations, and credit risk management—credentials the company says will be core to building a compliant, scalable banking entity.
The application continues a broader trend of fintech firms seeking banking charters to support lending growth, deposit-gathering, and embedded finance initiatives.
Industrial loan company charters, permitted only in certain U.S. states including Utah, allow commercial firms to own banks while remaining outside the Bank Holding Company Act.
If regulators approve the charter and deposit insurance, PayPal Bank would mark one of the most consequential structural shifts in the company’s history, positioning the fintech closer to traditional financial institutions while continuing to serve its more than 400 million global customers.