PayPal Applies to Launch Industrial Bank in Utah
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Global payments giant PayPal recently announced that it has submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to establish PayPal Bank.
The announcement, published this Monday, says that this is a proposed Utah-chartered industrial loan company.
PayPal Bank To Allow PayPal To Provide Loans More Efficiently
PayPal has been providing loans for over a decade, starting in 2013. Since then, it has provided access to over $30 billion in loans and working capital to more than 420,000 business accounts around the world.
As such, the firm was there to fill a gap for small businesses seeking capital needed to expand, buy inventory, invest in the people, tools, and other resources needed for growth.
If approved, PayPal Bank would allow PayPal to provide business lending solutions more efficiently to small businesses in the US, and reduce their reliance on third parties. At the same time, this would also strengthen PayPal’s own business and allow it to further secure its position in the US financial market.
Commenting on the matter, PayPal’s president and chief executive officer, Alex Chriss, said that securing capital remains a significant hurdle for small businesses striving to grow and scale.
“Establishing PayPal Bank will strengthen our business and improve our efficiency, enabling us to better support small business growth and economic opportunities across the U.S,” Chriss added.
What Else Will PayPal Bank Be Able To Offer?
Apart from providing lending solutions for small businesses, PayPal Bank also expects to offer interest-bearing savings accounts to customers. The bank would also seek to become a direct member in the US with card networks, to complement processing and settlement activities through existing banking relationships.
If the plans get approved by the US regulators, customer deposits at PayPal Bank would be eligible for FDIC insurance coverage.
The Bank’s first President will be Mara McNeill, who has over 25 years of financial services experience in banking, as well as commercial lending and private equity. Prior to joining PayPal, she was the CEO and president of Toyota Financial Savings Bank.
PayPal itself has been revolutionizing commerce globally for over 25 years now, creating innovative experiences that have made moving money, selling, and shopping easier, more personalized, and secure. The company has been empowering both consumers and businesses in nearly 200 markets, enabling them to join and thrive in the global economy.
