PayPal Submits Applications to Establish an Industrial Bank to Expand Access to Financial Services for U.S. Small Businesses

Rhea-AI Summary

PayPal (NASDAQ: PYPL) submitted applications on Dec. 15, 2025 to the Utah Department of Financial Institutions and the FDIC to establish PayPal Bank, a proposed Utah‑chartered industrial loan company.

Since 2013, PayPal has provided access to over $30 billion in loans and working capital to more than 420,000 business accounts worldwide. As proposed, PayPal Bank would enable more efficient U.S. small business lending, reduce reliance on third parties, offer interest‑bearing savings accounts, seek direct card‑network membership, and make customer deposits eligible for FDIC insurance if approved. Mara McNeill was named PayPal Bank President; she has 25+ years of experience in banking and commercial lending.

Positive

• Established lending record: >$30 billion provided since 2013
• Customer reach: >420,000 business accounts served worldwide
• Leadership: Mara McNeill named PayPal Bank President with 25+ years experience
• Product expansion: Plans to offer interest-bearing savings accounts and FDIC insurance if approved

Negative

• PayPal Bank requires regulatory approval from Utah DFI and the FDIC before operating

News Market Reaction

+0.97%

1 alert

+0.97% News Effect

On the day this news was published, PYPL gained 0.97%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Business lending provided: $30 billion Business accounts served: 420,000 accounts Executive experience: 25 years

3 metrics

Business lending provided $30 billion Loans and working capital since 2013 via PayPal

Business accounts served 420,000 accounts Business accounts worldwide receiving loans/working capital since 2013

Executive experience 25 years Mara McNeill’s financial services experience for PayPal Bank presidency

Market Reality Check

Price: $40.42 Vol: Volume 16,937,086 is 4% a...

normal vol

$40.42 Last Close

Volume Volume 16,937,086 is 4% above the 20-day average of 16,239,766. normal

Technical Shares at $60.74, trading below the 200-day MA of $68.56 and 34.86% under the 52-week high.

Peers on Argus

PYPL was nearly flat at -0.05% while key credit peers were mostly lower: SOFI -5...

PYPL was nearly flat at -0.05% while key credit peers were mostly lower: SOFI -5.89%, ALLY -1.67%, SYF -1.43%, AXP -0.48%, with COF +0.18%. This points to stock-specific drivers rather than a broad sector move.

Historical Context

5 past events · Latest: 2025-11-19 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
2025-11-19	Sports partnership	Positive	-1.0%	Global multi-year digital payments partnership with Liverpool FC.
2025-11-10	Product launch	Positive	+0.1%	Launch of Venmo Stash rewards program with tiered cash-back incentives.
2025-11-10	Geographic expansion	Positive	+0.1%	Introduction of PayPal Pay in 4 BNPL offering in Canada.
2025-10-28	Quarterly earnings	Positive	+3.9%	Release of stronger Q3 2025 financial results and conference call.
2025-10-28	AI product launch	Positive	+3.9%	Launch of agentic commerce services for AI-driven shopping.

Pattern Detected

Recent PYPL headlines have generally been strategic and positive, with four of five prior events followed by modest gains and one partnership announcement seeing a small negative reaction.

Recent Company History

Over the last few months, PayPal reported stronger Q3 2025-10-28 results and launched AI-driven agentic commerce services the same day, with both items followed by a 3.94% gain. Earlier, it expanded no-fee BNPL in Canada and introduced Venmo Stash rewards on 2025-11-10, each coinciding with small positive moves of 0.05%. A global partnership with Liverpool FC on 2025-11-19 aligned with a modest -0.97% decline. The new bank application continues this pattern of strategic expansion announcements.

Market Pulse Summary

This announcement details PayPal’s applications to form a Utah-chartered industrial bank focused on ...

Analysis

This announcement details PayPal’s applications to form a Utah-chartered industrial bank focused on U.S. small-business lending, building on over $30 billion in financing to 420,000 business accounts since 2013. The move fits a pattern of strategic initiatives alongside recent product launches and stronger Q3 results. Ahead of this news, shares traded below the $68.56 200-day MA and 34.86% under the 52-week high, with recent regulatory filings highlighting active capital markets and insider sales.

Key Terms

industrial loan company, fdic insurance coverage

2 terms

industrial loan company regulatory

"to establish PayPal Bank, a proposed Utah-chartered industrial loan company."

A industrial loan company is a state‑chartered, bank‑like lender that can take deposits and make loans but often operates under different rules than conventional banks and may be owned by non‑bank commercial firms. Think of it like a retail business that also runs a small bank; investors should care because that ownership structure and lighter oversight can change a firm’s risk profile, funding stability, and regulatory scrutiny—factors that affect valuation and credit risk.

fdic insurance coverage regulatory

"If approved, customer deposits at PayPal Bank would be eligible for FDIC insurance coverage."

FDIC insurance coverage is a federal protection that acts like a safety net for cash held in U.S. bank accounts, reimbursing depositors if an insured bank fails up to a government-set limit. For investors, it matters because it reduces the risk of losing cash parked in checking, savings, or certain accounts, affecting decisions about where to hold short-term funds and how much liquidity to keep in banks versus other investments.

AI-generated analysis. Not financial advice.

SAN JOSE, Calif., Dec. 15, 2025 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) today announced it has submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to establish PayPal Bank, a proposed Utah-chartered industrial loan company. 

Since 2013, PayPal has provided access to over $30 billion in loans and working capital to more than 420,000 business accounts worldwide, filling a critical gap for small businesses seeking capital to expand, buy inventory, or invest in the people and tools needed to thrive. As proposed, PayPal Bank would enable PayPal to provide business lending solutions more efficiently to small businesses in the U.S., while reducing reliance on third parties and strengthening PayPal's business.  

"Securing capital remains a significant hurdle for small businesses striving to grow and scale," said Alex Chriss, President and Chief Executive Officer, PayPal. "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." 

In addition to providing small business lending solutions, PayPal Bank expects to offer interest-bearing savings accounts to customers. PayPal Bank would also seek direct membership in the U.S. with card networks to complement processing and settlement activities through existing banking relationships. 

If approved, customer deposits at PayPal Bank would be eligible for FDIC insurance coverage. Mara McNeill has been selected to serve as PayPal Bank's President, with over 25 years of financial services experience in banking, commercial lending, and private equity. Before joining PayPal, she served as President and CEO of Toyota Financial Savings Bank. 

Forward-Looking Statements
This press release contains "forward-looking" statements within the meaning of applicable securities laws. Forward-looking statements and information relate to future events and future performance and reflect, among other things, the possibility that approval may not be obtained and the expected benefits from establishing PayPal Bank. Forward-looking statements may be identified by words such as "seek", "believe", "plan", "estimate", "anticipate", "expect", "project", "forecast", or intend", and statements that an event or result "may"" "will", "should", "could", or "might" occur or be achieved and any other similar expressions.   

Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially from the statements made. More information about these and other factors can be found in PayPal Holdings, Inc.'s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission (the "SEC"), and its future filings with the SEC.   

The forward-looking statements contained in this press release speak only as of the date hereof.  PayPal expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. 

About PayPal 
PayPal has been revolutionizing commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com, https://about.pypl.com/ and https://investor.pypl.com/. 

Investor Relations Contact  
investorrelations@paypal.com   

Media Relations Contact  
mediarelations@paypal.com 

View original content to download multimedia:https://www.prnewswire.com/news-releases/paypal-submits-applications-to-establish-an-industrial-bank-to-expand-access-to-financial-services-for-us-small-businesses-302642655.html

SOURCE PayPal, Inc.

FAQ

What did PayPal (PYPL) file on December 15, 2025 regarding a bank?

PayPal submitted applications to the Utah Department of Financial Institutions and the FDIC to establish PayPal Bank, a proposed Utah‑chartered industrial loan company.

How much lending has PayPal (PYPL) provided to businesses since 2013?

PayPal has provided access to over $30 billion in loans and working capital to more than 420,000 business accounts since 2013.

Would deposits at PayPal Bank be FDIC insured if approved for PYPL customers?

If PayPal Bank receives regulatory approval and accepts deposits, customer deposits would be eligible for FDIC insurance coverage.

Who will lead PayPal Bank and what is their experience for PYPL investors?

Mara McNeill was selected as PayPal Bank President; she brings over 25 years of banking, commercial lending, and private equity experience.

What new services would PayPal Bank enable for small businesses using PYPL?

PayPal Bank is expected to enable more efficient business lending, reduce reliance on third parties, and offer interest‑bearing savings accounts in the U.S.

What is the main regulatory hurdle for PayPal Bank that could affect PYPL operations?

The main hurdle is obtaining regulatory approval from the Utah Department of Financial Institutions and the FDIC; operations depend on those approvals.