PayPal Holdings in San Jose, Calif., has applied for an industrial loan charter.
The payments giant said in a press release that it plans to form PayPal Bank in Utah. The proposed bank would enable PayPal to more efficiently provide lending solutions to U.S. small businesses while reducing reliance on third parties.
“Securing capital remains a significant hurdle for small businesses striving to grow and scale,” Alex Chriss, PayPal’s president and CEO, said in the release. “Establishing PayPal Bank will strengthen our business and improve our efficiency, enabling us to better support small business growth and economic opportunities.”
The bank is also expected to offer interest-bearing savings accounts. It plans to seek direct membership in the U.S. with card networks to complement processing and settlement activities through existing banking relationships.
Mara McNeill, former president and CEO of Toyota Financial Savings Bank, would serve as the proposed bank’s president.