PayPal has formally submitted an application to establish PayPal Bank, a Utah-chartered industrial loan company (ILC) aimed at expanding access to capital for small businesses across the United States. The move represents a strategic effort by the digital payments giant to deepen its footprint in the financial services sector while addressing persistent challenges faced by entrepreneurs seeking funding.
“Securing capital remains a significant hurdle for small businesses striving to grow and scale,” said Alex Chriss, president and CEO of PayPal, in a statement. “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.”
If approved, PayPal Bank will operate under state and federal oversight as an ILC, a type of financial institution that can lend money and take deposits without being regulated as a traditional bank holding company. Utah is a hub for these charters, attracting fintechs aiming to innovate within regulated banking frameworks.
This application signals PayPal’s continued commitment to financial inclusion, particularly for startups and underserved communities navigating the complexities of the modern economy.
