PayPal applies to become a US bank — filings with FDIC and Utah regulators

PayPal has submitted applications to form a U.S. bank, filing with the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions (UDFI). If approved, the new entity — tentatively dubbed “PayPal Bank” — would be chartered in Utah and offer interest‑bearing savings accounts and other bank services.

The company says it has provided more than $30 billion in loans and working capital to over 420,000 business accounts globally and frames the bank application as a way to improve access to capital for small businesses. PayPal already operates as a bank in Europe (Luxembourg); a U.S. charter would allow it to take deposits directly and expand its product set.

Why PayPal is pursuing a bank charter

• Stable funding: Taking deposits could lower funding costs and provide PayPal a steadier source of capital for lending and working‑capital products.
• New consumer products: A charter would let PayPal offer deposit accounts and interest‑bearing savings integrated with its wallet and merchant services.
• Operational control: Owning a bank reduces dependence on partner banks and can simplify regulatory and operational arrangements.

Regulatory context

Bank applications from nontraditional firms have picked up this year amid a more permissive approach by some regulators. The Office of the Comptroller of the Currency (OCC) recently granted conditional approvals to several crypto firms for national trust charters, and other companies including Nissan and Sony have also filed bank applications. PayPal’s filing is with federal and state regulators; approval will require review by the FDIC and Utah authorities.

What to watch next

• Progress of PayPal’s FDIC and Utah filings and any public comment periods or approval timelines.
• Details on the products PayPal will offer — interest rates, fees, deposit insurance coverage and integration with existing PayPal services.
• Regulatory reactions and wider implications if more fintechs pursue bank charters.

For more on the filing, see the coverage and keep an eye on official filings at the FDIC and the Utah Department of Financial Institutions.

Discussion: Would you trust a fintech like PayPal with bank accounts and savings — or do you prefer traditional banks? What features would make you switch?