PayPal Seeks US Banking Charter, Joins Wave of Tech and Crypto Firms Applying PayPal has officially applied to become a bank in the United States. The payments giant submitted applications to the Federal Deposit Insurance Corporation and the Utah Department of Financial Institutions to establish PayPal Bank. This move follows its existing status as a bank in Europe, where it operates out of Luxembourg. In its announcement, PayPal emphasized its focus on serving small businesses, which it says face significant hurdles in securing capital. The company claims to have provided over 30 billion dollars in loans and working capital to more than 420,000 business accounts worldwide. Alex Chriss, president and CEO of PayPal, stated that forming a bank would improve efficiency and strengthen the company’s ability to support small business growth and economic opportunities across the US. As a chartered bank, PayPal also plans to offer interest-bearing savings accounts to customers. PayPal’s application is part of a significant trend of non-financial companies seeking banking charters, a process that appears to have smoother approval pathways under the current Trump administration. The financial regulatory environment has become notably more welcoming to new entrants from the technology and digital asset sectors. This shift was highlighted just days before PayPal’s news when the Office of the Comptroller of the Currency granted conditional approval for five cryptocurrency companies to become federally chartered trust banks. The approved firms include BitGo, Circle, and Ripple. In a statement, OCC Comptroller Jonathan V. Gould endorsed the trend, saying new entrants benefit consumers and the economy by providing access to new products, services, and credit sources, ensuring a dynamic and competitive banking system. The list of companies seeking to become banks continues to grow. Automaker Nissan and electronics conglomerate Sony have also submitted applications to form their own banking institutions. This wave of applications signals a transformative period where the traditional lines between banking, commerce, and technology are increasingly blurring, with major corporations aiming to capture more of the financial services value chain directly.
