PayPal is setting up as a bank

PayPal has submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to establish PayPal Bank, a proposed Utah-chartered industrial loan company.

The filings were submitted to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation, PayPal said.

The company, in an announcement, said it has provided access to over $30 billion in loans and working capital to more than 420,000 business accounts worldwide since 2013.

The company said PayPal Bank would enable it to provide business lending solutions more efficiently, reduce reliance on third parties and strengthen PayPal's business.

"Securing capital remains a significant hurdle for small businesses striving to grow and scale," Alex Chriss, President and Chief Executive Officer, PayPal, said.

The digital payments firm said PayPal Bank expects to offer interest-bearing savings accounts, seek direct membership in US card networks and that, if approved, customer deposits would be eligible for FDIC insurance coverage.

PayPal noted that Mara McNeill has been selected to serve as PayPal Bank's president and that she has over 25 years of financial services experience, including serving as President and CEO of Toyota Financial Savings Bank.

The Recap

• PayPal submits applications to form a Utah-chartered industrial bank.
• Provided over $30 billion in loans since 2013 worldwide.
• Approval would make customer deposits eligible for FDIC insurance.