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PayPal has introduced a formal request before the US authorities to establish PayPal Bank, a banking entity that would allow it to expand its financial services beyond digital payments. The idea is that first, the company can offer loans to small businesses and savings accounts with interest to its customers. It would be the first step in a logical evolution in a context in which all fintech companies are committed to offering more and more services. Strategy. PayPal has filed for approval with the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions to create a Utah-based industrial lending company. This type of entity can make loans, hold FDIC-insured deposits, and be owned by a non-financial institution. The objective: financial autonomy. According to declared PayPal CEO Alex Chriss, “raising capital remains a significant obstacle for small businesses looking to grow and scale.” The creation of PayPal Bank would reduce its dependence on third parties to provide financing, improving operational efficiency. According to the firm’s account, since 2013, PayPal has facilitated more than $30 billion in loans and capital to more than 420,000 business accounts around the world. A favorable regulatory context. This step by PayPal comes at a time of regulatory opening in this area under the Trump administration. Just like they count From Bloomberg, last week, five cryptocurrency platforms, including Ripple and Circle, received preliminary approval to establish national trust banks. Until a few years ago, approval was perceived as a complicated path. The fintech trend towards banking. PayPal joins a wave of financial technology companies seeking to become regulated banking entities. According to collect the Financial Times, Brazil’s Nubank and cryptocurrency exchange Coinbase have all applied for banking licenses this year. As a curiosity, other firms that a priori might have nothing to do with this sector, such as Nissan Motor and Sony Group, have also submitted similar requests. Even “buy now, pay later” platforms like Klarna and Affirm have launched debit cards, competing directly with traditional entities. Between the lines. The fintech sector is maturing, with a special ambition to offer financial services of all kinds. PayPal already has a banking license in Luxembourg, and in fact this makes it considered a banking entity throughout the European Union. The direction it wants to take in the United States would be the first step to consolidate its status as a global financial entity. The company also seeks to connect directly with American credit and debit card networks, eliminating intermediaries in its payment operations. Leading PayPal Bank will be Mara McNeill, former CEO of Toyota Financial Savings Bank. Stock market performance. Despite the announcement, which has driven shares up 1.5% in the extended market, according to CNBCPayPal is going through a difficult year on the stock market. The firm accumulates a drop of 29% in 2025, while the S&P 500 has risen almost 16% in the same period. However, in October the company reported quarterly revenue of $8.42 billion, up 7% year-over-year and above analyst expectations. Cover image | Brett Jordan In Xataka | Elon Musk’s fortune has exceeded $600 billion: SpaceX is not only breaking records in space