Tech News
← Back to articles

PayPal Just Filed to Become a Real Bank—Here's Why That Matters for Small Businesses

read original related products more articles

This article is part of the America's Favorite Mom & Pop Shops series. Read more stories

PayPal wants to cut out the middleman and become the bank itself. The payment company announced it submitted applications to Utah regulators and the FDIC to establish what will be called PayPal Bank.

If approved, PayPal Bank would offer small business loans, interest-bearing savings accounts to customers, and FDIC insurance coverage for deposits. The bank would also work directly with Visa and Mastercard to complement its existing payment processing.

Mara McNeill, former President and CEO of Toyota Financial Savings Bank, has been tapped to lead PayPal’s new bank.

Read more