PayPal wants its own bank—here's why that matters
PayPal just applied for a special Utah banking license on December 15, 2025, aiming to run its own lending and deposit operations in the US.
This move could help PayPal support small businesses more directly, instead of relying on third parties like WebBank.
What's PayPal actually planning?
PayPal has already given out $30 billion in loans and working capital to over 420,000 businesses since 2013.
With this new charter, they want to focus on US small business loans, offer FDIC-insured deposits, and let users open interest-earning savings accounts—all under the PayPal brand.
Leadership shakeup & industry trend
To lead the new bank, PayPal picked Mara McNeill—a banking veteran with over 25 years' experience (she previously ran Toyota Financial Savings Bank).
This step follows a wave of fintechs applying for similar charters in 2025 as regulations get more innovation-friendly.