PayPal applies to become a bank in the United States after filing a formal application to create its own banking entity in the United States. The company has initiated proceedings with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation, the agency responsible for supervising and insuring bank deposits in the United States.
The step is not minor. This represents the direct entry of one of the world’s largest digital payments platforms into the country’s regulated banking system, against a political and regulatory backdrop more favorable to fintech companies seeking to obtain their own licenses.
A full-fledged bank to strengthen credit activity
The creation of PayPal Bank would allow the company to strengthen its capacity to provide direct financing, particularly to small and medium-sized businesses. Since 2013, the platform has channeled more than $30 billion in loans and capital lines, leveraging agreements with external entities.
With its own banking license, PayPal would reduce its dependence on third parties and gain greater control over the design, risk management and profitability of its credit products. This structural change is one of the main reasons why PayPal applies to become a bank in the United States at this precise moment.
Direct impact on small businesses
Access to financing remains one of the biggest barriers to small business growth in the United States. The company believes that having its own bank will allow it to accelerate the granting of credit and better adjust the conditions to the real needs of this segment.
The approach aligns with the company’s official narrative, which places small businesses as one of the strategic pillars of its financial expansion in the domestic market.
The regulatory turning point that drives fintech
PayPal’s request, as El País indicates, comes in a more lax regulatory environment for the entry of new entities into the banking system. Since Donald Trump became president, the number of applications for banking licenses has increased significantly compared to the previous period.
Under the Biden administration, petitions were few and many were paralyzed by waiting for a long and complex process. The change in criteria has reignited interest among fintech companies and the crypto sector to fully integrate with the traditional financial system.
Recent precedents in the financial sector
In recent weeks, the Office of the Comptroller of the Currency has granted preliminary approvals to major digital asset companies like Ripple and Circle to create national trust banks. These decisions reinforce the trend towards greater integration of technological players in regulated banking.
In this context, PayPal’s decision is not isolated, but part of a broader sector strategy that seeks to take advantage of a more predictable and less restrictive regulatory framework.
Savings accounts and new financial products
In addition to the lending activity, PayPal has confirmed its interest in offering interest-bearing savings accounts to its American customers. This type of product would expand its offering of consumer-oriented financial services and strengthen its position against traditional banks and neobanks.
The company already has banking experience in Europe, where it operates with a license in Luxembourg. This regulatory infrastructure and knowledge was essential to making the leap in the United States.
An address with banking experience
To lead the new entity, PayPal has named Mara McNeill as president of PayPal Bank. The director has more than two decades of experience in banking and commercial lending and served as CEO of Toyota Financial Savings Bank.
Its profile indicates management focused on prudent credit growth and strict compliance with regulatory requirements, a critical factor for final license approval.
A strategic approach with long-term impact
The decision that PayPal applies to become a bank in the United States marks a turning point in the company’s evolution. From a digital payment platform to a financial entity with its own license, this leap redefines its role within the American banking ecosystem.
If the application is approved, PayPal will not only increase its business capacity, but also intensify competition with traditional banks and other financial technology companies. The outcome of this process will be key to understanding how far the transformation of the financial sector will go in the years to come.
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