PayPal Wants to Launch “PayPal Bank” — What It Could Mean for U.S. Small Businesses
SHERIDAN, WYOMING – December 27, 2025 – A new PayPal move could reshape how small business owners access lending and savings—if regulators give the green light.
What PayPal Just Announced
PayPal Holdings, Inc. says it has submitted applications to create PayPal Bank, a proposed Utah-chartered industrial loan company. The applications were submitted to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). For everyday people, this may sound like corporate plumbing, but for small business owners, it could eventually affect how fast and how smoothly financing options show up inside tools they already use.
The company’s main message is straightforward: it wants to expand access to financial services for U.S. small businesses. In plain terms, PayPal is asking permission to run more of the banking rails itself, instead of leaning as heavily on outside partners.