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PayPal said Monday it has filed applications with regulators to launch a new bank designed to better serve small businesses across the United States.

The company submitted documents to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to form an industrial bank called PayPal Bank.

If approved, the move would allow PayPal to expand its financial services and offer more direct support to small business owners.

According to PayPal, the new bank would provide lending solutions and interest-bearing savings accounts for customers. It would also seek direct membership with major card networks.

This step would help PayPal handle payments, processing, and settlements more efficiently while still working with its current banking partners.

For small businesses that already rely on PayPal for daily sales, the change could mean faster access to money and simpler tools in one place.

If regulators approve the application, customer deposits at PayPal Bank would be covered by FDIC insurance.

According to FoxBusiness, this protection insures deposits of up to $250,000 per depositor, per insured bank.

That coverage is meant to give small business owners peace of mind when storing their earnings or savings with the new bank.

PayPal Aims to Expand Lending

PayPal CEO Alex Chriss said access to funding remains a major challenge for growing companies.

"Securing capital remains a significant hurdle for small businesses striving to grow and scale," Chriss said.

He added that creating PayPal Bank would help the company operate more efficiently and better support small business growth and economic opportunity across the country.

PayPal named Mara McNeill as president of PayPal Bank. McNeill brings more than 25 years of experience in banking, commercial lending, and private equity.

Before joining PayPal, she served as president and CEO of Toyota Financial Savings Bank, giving her direct experience in running a regulated financial institution.

The company noted that it is not new to small business lending. Since 2013, PayPal has provided more than $30 billion in loans and working capital to over 420,000 business accounts worldwide, Yahoo reported.

These funds have helped owners buy inventory, expand operations, and invest in workers and equipment.

Industrial banks like the one PayPal plans to launch are regulated by state authorities and the FDIC.

While they are exempt from some federal banking rules, they still follow the same safety and supervision standards as other banks.

For many small business owners, this filing signals PayPal's push to become more than a payment app and a stronger financial partner as they grow.

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Paypal, Bank