PayPal applies to become a bank

PayPal said on Monday that it has applied for permission to create PayPal Bank, which would be able to provide loans to small businesses.

PayPal CEO Alex Chriss said that setting up PayPal Bank would make the company stronger and more efficient, and would help it better support small business growth and economic opportunities across the United States.

PayPal said the application will be reviewed by the U.S. Federal Deposit Insurance Corporation, together with Utah’s Department of Financial Institutions.

The company, which owns the popular payment app Venmo, also plans to offer savings accounts that earn interest. PayPal already provides credit lines to consumers and has been expanding its banking-style services as it competes with many fintech companies that want to take customers from traditional banks.

After the announcement, PayPal shares rose 1.5% in after-hours trading.

In October, PayPal reported that quarterly revenue rose 7% compared to the previous year, reaching $8.42 billion, which was higher than expected. However, in 2025 the company’s stock has fallen about 29%, while the S&P 500 index has increased by nearly 16% over the same period.