WASHINGTON (dpa-AFX) - PayPal Holdings Inc. (PYPL) announced that it has submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to establish PayPal Bank, a proposed Utah-chartered industrial loan company.
Since 2013, PayPal has provided more than $30 billion in loans and working capital to over 420,000 business accounts worldwide. The efforts have helped small businesses access capital to expand operations, purchase inventory, and invest in people and tools needed to grow. With the creation of PayPal Bank, the company aims to deliver business lending solutions more efficiently to U.S. small businesses, while reducing reliance on third parties and strengthening its overall business model, PayPal said in a statement.
Beyond lending, PayPal Bank plans to offer interest-bearing savings accounts to customers. The institution would also seek direct membership in U.S. card networks to complement its existing processing and settlement activities through current banking relationships.
If approved, customer deposits at PayPal Bank would be eligible for FDIC insurance coverage. PayPal has appointed Mara McNeill as President of PayPal Bank. McNeill brings over 25 years of experience in financial services, including leadership roles in banking, commercial lending, and private equity. Prior to joining PayPal, she served as President and CEO of Toyota Financial Savings Bank.
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