① PayPal has submitted applications to the Utah Department of Financial Institutions and the FDIC, planning to establish a company called "PayPal Bank". The Utah Chartered Industrial Lending Corporation; ② If approved, PayPal Bank 's customer deposits will be eligible for FDIC insurance. In addition to providing security, the company also plans to offer customers interest-bearing savings accounts and seeks to join a U.S. credit card organization.
PayPal, often referred to as the "American version of Alipay," has filed an application to become a bank in the United States, as the international payment giant hopes to enter the banking system in the current relatively lenient regulatory environment.
On Monday, PayPal Holdings, Inc. announced on its website that it has filed an application with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to establish a Utah Chartered Industrial Lending Corporation (ILC) named "PayPal Bank".
The statement said that PayPal Bank will enable PayPal to provide business loan solutions to small businesses in the United States more efficiently, while reducing its reliance on third-party institutions and strengthening PayPal's own business capabilities.
PayPal stated that since 2013, the company has provided more than $30 billion in loans and working capital to more than 420,000 business accounts worldwide, filling gaps for small businesses seeking funding to expand their operations, purchase inventory, or invest in key areas such as talent and tools.
PayPal CEO Alex Chriss stated, "Access to funding remains a significant barrier for small businesses striving to grow. The creation of PayPal Bank will strengthen our business capabilities, improve operational efficiency, and enable us to better support the growth and economic opportunities of small businesses everywhere."
In addition to offering small business loan solutions, PayPal Bank plans to provide customers with interest-bearing savings accounts. Simultaneously, PayPal Bank will seek direct membership in US card organizations to complement its payment processing and settlement operations conducted through existing banking relationships.
The press release stated that, if approved, PayPal Bank's customer deposits will be eligible for FDIC insurance coverage.
Since Trump took office earlier this year, as regulators have pursued deregulation and a more pro-economic-growth approach, U.S. banks... The number of license applications has surged.
Last week, the U.S. Office of the Comptroller of the Currency (OCC) gave preliminary approval to applications from cryptocurrency giants such as Ripple and Circle to establish a national trust bank. This significant move could further integrate digital assets into the banking system.
Minneapolis-based buy-now-pay-later company Sezzle is also interested in obtaining a banking license due to the changing regulatory landscape. Sezzle's CEO stated that the heavy burden of state-level regulations is one reason Sezzle is exploring industrial lending licenses.
It should be noted that some payment companies in Europe are already operating as banks. For example, the buy-now-pay-later company Klarna Group operates in Europe as a digital bank, providing financial services.
(Article source: CLS)
