PayPal wants to become a bank | Infinium-tech
PayPal now wants to become a bank in the US. The company has submitted the necessary applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to establish PayPal Bank, which will be a Utah-based chartered industrial loan company.
PayPal says this will strengthen its business and improve its efficiency, allowing it to “better support small business growth and economic opportunity across the US”. In addition to providing small business loans, PayPal Bank will offer interest-bearing savings accounts to customers, and it will also become a member of the card network in the US “to complement processing and settlement activities through existing banking relationships.”
Since 2013, PayPal says it has “provided access to more than $30 billion in loans and working capital to more than 420,000 business accounts worldwide”, and that the proposed bank would allow it to “more efficiently provide business lending solutions to small businesses in the US, while reducing reliance on third parties and strengthening PayPal’s business”.
If officials approve the establishment of PayPal Bank, customer deposits will be eligible for FDIC insurance coverage.
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