PayPal plans to open its own bank
By ForGeeks
PayPal intends to go a step further and become a full-fledged bank in the US. The company has filed the necessary applications with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to establish PayPal Bank. The new bank is to be chartered as an industrial lending institution with a Utah license.
A new bank is to be chartered as an industrial lending institution with a Utah license.
PayPal says launching its own bank will strengthen the company’s business and improve operational efficiency. It will allow it to better support small business growth and expand economic opportunities across the United States. In addition to making loans to small businesses, PayPal Bank will offer interest-bearing savings accounts to customers. The bank will also become a participant in card payment networks in the U.S., complementing existing processing and settlement processes that are now done through partner banks.
PayPal Bank will also become a member of the card payment networks in the U.S.
Since 2013, PayPal has provided more than $30 billion in loans and working capital to more than 420,000 business accounts around the world, according to its own data. Creating its own bank will allow the company to more efficiently provide lending solutions to small businesses in the U.S., reduce its reliance on third-party financial institutions, and further strengthen PayPal’s market position.
