PayPal (PYPL) Stock: Files Applications to Establish PayPal Bank

TLDR

• PayPal filed applications with Utah regulators and the FDIC to establish PayPal Bank, an industrial loan company
• The company has provided over $30 billion in loans to more than 420,000 business accounts worldwide since 2013
• PayPal Bank would offer small business lending, interest-bearing savings accounts, and FDIC-insured deposits
• Mara McNeill, former CEO of Toyota Financial Savings Bank, will serve as PayPal Bank President
• Shares rose 1.5% in extended trading after the announcement, though the stock is down 29% in 2025

PayPal Holdings submitted applications on December 15 to create its own bank. The company wants to establish PayPal Bank as a Utah-chartered industrial loan company.

The applications were filed with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation. Both agencies will need to approve the bank before it can operate.

PayPal isn’t new to lending money. Since 2013, the company has provided access to over $30 billion in loans and working capital to more than 420,000 business accounts worldwide.

PayPal Holdings, Inc., PYPL

The fintech giant currently relies on third-party partners for much of its lending activity. Creating its own bank would let PayPal handle more of this business directly.

CEO Alex Chriss said securing capital remains a major hurdle for small businesses trying to grow. He added that establishing PayPal Bank will strengthen the company’s business and improve efficiency.

What PayPal Bank Would Offer

The proposed bank would focus primarily on providing business lending solutions to small businesses in the United States. This builds on PayPal’s existing track record of helping small businesses access capital for expansion, inventory purchases, and operational needs.

PayPal Bank also plans to offer interest-bearing savings accounts to customers. If approved, customer deposits would be eligible for FDIC insurance coverage.

The company would seek direct membership with U.S. card networks. This would complement its existing processing and settlement activities through current banking relationships.

PayPal tapped Mara McNeill to serve as the bank’s president. McNeill brings over 25 years of financial services experience in banking, commercial lending, and private equity.

She previously served as President and CEO of Toyota Financial Savings Bank. Her appointment signals PayPal’s serious commitment to running a proper banking operation.

Stock Performance and Market Context

PayPal shares rose 1.5% in extended trading following the bank announcement. The stock closed at $60.74 on December 15.

Despite the positive reaction, PayPal stock has struggled in 2025. Shares are down about 29% for the year, while the S&P 500 has gained nearly 16% over the same period.

The stock trades 34.86% below its 52-week high. It’s also trading below its 200-day moving average of $68.56.

PayPal reported quarterly revenue of $8.42 billion in October, up 7% from a year earlier. The results beat analyst expectations.

The company faces growing competition from other fintech firms that are also exploring banking licenses. Wise is considering a banking license in the United Kingdom and has applied to establish a national trust bank in Texas.

Revolut operates under a restricted banking license in the UK while regulators review its risk management. The competitive landscape for fintech banking continues to heat up.

The bank application is subject to regulatory approval and there’s no guarantee it will be granted. PayPal’s forward-looking statements acknowledge that approval may not be obtained.

Trading volume on December 15 was 16,937,086 shares, about 4% above the 20-day average of 16,239,766 shares.

Summary: PayPal applied to establish an industrial bank in Utah to expand small business lending and offer FDIC-insured accounts.

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