PayPal has applied to become a bank in the US, the latest fintech seeking to capitalise on the Trump administration’s more permissive approach to financial industry oversight.
The payments company on Monday said it submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to create PayPal Bank. Becoming a bank would help it increase its lending to small businesses, the company added.
“Securing capital remains a significant hurdle for small businesses striving to grow and scale,” said chief executive Alex Chriss. “Establishing PayPal Bank will strengthen our business and improve our efficiency, enabling us to better support small business growth and economic opportunities across the US.”