Financial technology (fintech) company PayPal (PYPL) has applied for approval to launch a traditional bank complete with savings accounts and loans for small businesses.
The company said that it aims to form “PayPal Bank” in the new year, a move that management said in a news release will “strengthen our business and improve our efficiency…”
The U.S. Federal Deposit Insurance Corporation will review the application proposing the establishment of PayPal Bank. A timeline for a decision hasn’t been announced.
The company, which owns popular payment app Venmo, hopes to offer interest-bearing savings accounts to customers.
PayPal, which already makes credit lines available to consumers, said that the creation of a traditional bank is a natural extension of its business.
The stock of PayPal has been caught in an extended downturn and slumped 30% in 2025. Some analysts say the company’s fintech business has stalled amid growing competition.
Shares of PYPL are currently trading at $60.74 U.S. per share.
