- Paypal Holdings has applied to open its first physical U.S. bank, chartered in Utah as an industrial loan company.
- The proposed bank would focus on lending to small businesses and offering interest-bearing savings accounts.
- The application was submitted to the Utah Department of Financial Institutions and the FDIC on December 15, 2025.
- The bank would enable direct membership with U.S. card networks and provide FDIC insurance coverage on deposits.
- PayPal appointed Mara McNeill as President of the new bank, bringing over 25 years of experience in financial services.
PayPal Holdings announced it has filed an application to establish its first U.S. physical bank. The new entity would be a Utah-chartered industrial loan company. The company submitted the necessary documents on December 15, 2025, to both the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC).
If approved, the bank would focus on providing business lending solutions to U.S. small businesses. In addition to lending, PayPal intends to offer interest-bearing savings accounts to customers. The bank would aim to become a direct member of U.S. card networks to enhance processing and settlement activities alongside existing banking partnerships.
According to the application, customer deposits at the new bank would be insured by the FDIC, which safeguards depositors’ funds in case of bank failure. This move is expected to improve PayPal‘s operational efficiency and support growth opportunities for small businesses across the United States.
In preparation for the bank’s potential launch, PayPal appointed Mara McNeill as President. McNeill brings more than 25 years of experience in financial services, including banking, commercial lending, and private equity. Following the announcement, PayPal stock saw a slight increase of just under 1% in after-hours trading.
Further details about the initiative are available in PayPal’s official statement.
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