PayPal Goes All In on Banking as Regulatory Winds Shift Under Trump

PayPalPYPL

doesn’t want to just move money anymore — it wants to be the bank. The fintech has filed to launch PayPal Bank in Utah, taking advantage of a more welcoming regulatory climate for nontraditional lenders. Since 2013, PayPal has pushed over $30B to 420K small businesses, and turning that lending engine into a bank gives it tighter control over capital, margins, and its next phase of growth.

• A federal banking charter would cut PayPal’s reliance on third-party partnerships, while offering FDIC-insured deposits to enhance trust among merchants and consumers.
• The move follows similar applications by NubankNU
  and CoinbaseCOIN
  , alongside recent approvals for Ripple and Fidelity Digital Assets.

Banking on change: Comptroller of the Currency Jonathan Gould said “new entrants into the federal banking sector are good for consumers, the banking industry, and the economy,” signaling Washington’s openness to fresh competition. The company already operates with a banking license in Luxembourg, suggesting it’s prepared for the regulatory scrutiny ahead. That experience puts it ahead of most fintechs now eyeing the same door.