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PayPal Filed for US Bank Charter to Expand Lending. Payments firm PayPal filed an application to establish a bank in the United States, aiming to expand its lending business as regulators took a more pro-growth approach. The San Jose-based company applied with Utah regulators and the FDIC to form an industrial loan company, a move increasingly favored by fintech firms. If approved, the charter would allow PayPal to strengthen small-business lending and reduce its reliance on third-party banking partners. PayPal CEO Alex Chriss said access to capital remained a major challenge for small businesses, and a bank would help the company better support their growth. The company said it also planned to offer interest-bearing savings accounts to customers through the proposed PayPal Bank. PayPal said it had provided more than $30 billion in loans and capital since 2013, underscoring its growing role in business financing. The filing came amid a surge in bank charter applications under the Trump administration’s deregulatory stance. PayPal named veteran banker Mara McNeill, formerly CEO of Toyota Financial Savings Bank, as president of the proposed bank.
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