PayPal CEO Alex Criss speaks at Global FinTech Fest in Mumbai, India on October 7, 2025.
Indranil Aditya | Null Photo | Getty Images
paypal announced on Monday that it has applied for approval to establish a PayPal bank that can provide loans to small and medium-sized businesses.
“The creation of PayPal Bank strengthens our business, increases efficiency, and allows us to better support the growth and economic opportunity of small businesses across the United States,” PayPal CEO Alex Chriss said in a statement.
PayPal said the Federal Deposit Insurance Corporation, along with the Utah Department of Financial Institutions, will review the application to create a PayPal bank.
The company, which owns the popular payments app Venmo, said in a statement that it also wants to offer interest-bearing savings accounts to customers. PayPal already offers lines of credit to consumers and is expanding its bank-like services as it competes with a growing number of fintech companies seeking to take business from traditional brick-and-mortar banks.
PayPal stock rose 1.5% in after-hours trading after the announcement.
PayPal announced in October that quarterly revenue rose 7% from a year earlier to $8.42 billion, beating analysts’ expectations. However, in 2025, stock prices fell about 29%, while the S&P 500 index rose about 16% during the same period.
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