American payment system operator PayPal Holdings Inc. has applied to establish a bank. According to a PayPal press release, the application has been submitted to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) for review.
The company expects PayPal Bank to be able to provide credit solutions to small businesses in the US, as well as offer interest-bearing savings accounts to consumers.
“Since 2013, the company has provided access to more than $30 billion in financing in the form of loans and working capital to businesses around the world,” the press release said. “The creation of PayPal Bank will allow us to offer credit solutions to businesses more effectively.”
PayPal Bank also plans to participate in the card business in the US.
The bank will be headed by Mara McNeill, who has 25 years of experience in the financial services industry. Prior to joining PayPal, she was president and CEO of Toyota Financial Savings Bank.
PayPal shares have fallen 29% since the beginning of this year.
