PayPal announced Monday that it has applied to establish PayPal Bank, a move that would allow the company to offer small business loans and expand its financial services.
“Forming PayPal Bank will strengthen our operations and enhance efficiency, helping us better support small business growth and economic opportunities across the U.S.,” PayPal CEO Alex Chriss said.
The application will be reviewed by the Federal Deposit Insurance Corporation and Utah’s Department of Financial Institutions. In addition to small business lending, PayPal plans to offer interest-bearing savings accounts to customers, further expanding its banking-like offerings. The company already provides consumer credit lines and has been broadening its financial services to compete with other fintech firms and traditional banks.
Following the announcement, PayPal shares rose 1.5% in extended trading. In October, the company reported quarterly revenue of $8.42 billion, up 7% year over year, surpassing analysts’ expectations. Despite that growth, the stock has declined roughly 29% in 2025, while the S&P 500 has gained nearly 16% over the same period.