PayPal Applies To Become A Bank Under Trump’s Loosened Financial Rules

PayPal Applies To Become A Bank Under Trump’s Loosened Financial Rules

A PayPal-backed bank could become a reality in the future.

#PayPal Holdings Inc. has submitted an application to become a bank in the United States, aiming to take advantage of a more lenient regulatory climate under the #Trump administration. The payments company filed paperwork with both the Federal Deposit Insurance Corp. and the Utah Department of Financial Institutions to establish a Utah-chartered industrial loan company that would be known as PayPal Bank. If approved, the move could strengthen the firm’s capabilities, particularly in small-business lending.

In its announcement, PayPal highlighted its track record of supporting commerce, noting that it has provided more than $30 billion in loans and capital since 2013. “Securing capital remains a significant hurdle for small businesses striving to grow and scale,” the company said, adding that establishing a bank would help it “improve our efficiency” and better support business growth.

Would you bank with PayPal?