PayPal Advances Toward Bank Status. PayPal has taken a major step toward becoming a bank by seeking regulatory approval to establish PayPal Bank. The company plans to introduce services such as small business lending and interest-earning savings accounts in the United States. These applications are presently being reviewed by Utah’s financial regulators and the FDIC.
CEO Alex Chriss stated that this initiative will enhance PayPal’s product range and provide stronger support to small businesses. As PayPal broadens its bank-like services, the move positions the company to compete more directly with traditional banks and other fintech companies.
