PayPal applies to become a bank under Trump’s looser financial rules
PayPal is the latest company looking to become a bank in the United States. On Monday, the company announced that it had submitted PayPal Bank account applications to the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions (UDFI). PayPal is already a bank in Europe, based in Luxembourg.
According to PayPal, the company has provided “more than $30 billion in loans and working capital” to more than 420,000 business accounts worldwide. PayPal focuses on small businesses by emphasizing the need for a US bank. “Obtaining capital remains a significant barrier for small businesses striving to grow and grow,” said Alex Chriss, president and CEO of PayPal, in a statement. “The creation of PayPal Bank will strengthen our business and improve our efficiency, allowing us to better support small business growth and economic opportunity across the United States. »
PayPal also plans to offer “interest-bearing savings accounts” as a bank. If approved, it will be chartered in Utah.
Applications to become a bank have been popping up left and right this year, with the chances of approval increasing under the Trump administration. On Friday, the Office of the Comptroller of the Currency (OCC) announced that five cryptocurrency companies, including BitGo, Circle, and Ripple, had received conditional approval to become federally chartered trust banks.
“New entrants to federal banking are good for consumers, the banking industry and the economy,” OCC Comptroller Jonathan V. Gould said in the release. “They provide access to new products, services and sources of credit to consumers and guarantee a dynamic, competitive and diversified banking system.”
Other companies such as Nissan and Sony have also submitted applications to establish a bank.
