PayPal Applies to Become a Bank as US Loosens Regulatory Reins(bloomberg.com)
bloomberg.com
PayPal Applies to Become a Bank as US Loosens Regulatory Reins
https://www.bloomberg.com/news/articles/2025-12-15/paypal-applies-to-become-a-bank-as-us-loosens-regulatory-reins
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PayPal is applying for a U.S. banking charter, likely as an Industrial Loan Company (ILC) in Utah, to offer more direct financial services like small business lending, taking advantage of a more favorable regulatory environment under the Trump administration for fintechs to become banks, gain FDIC insurance, and better compete with traditional banks. Essentially, PayPal wants to move beyond just being a payment app to become a full-fledged, regulated bank, especially to boost lending. This Fintech-to-Bank Trend: Follows other crypto firms like Circle and Paxos also getting bank-like approvals, showing a shift in financial regulation.