PayPal applies for US banking licence as it targets FDIC-insured expansion #
PayPal has submitted an application for a US banking licence, a strategic move that would allow the payments group to operate as a regulated bank under the oversight of US authorities. The licence — if approved — would give PayPal access to FDIC insurance, enabling it to offer deposit accounts backed by federal insurance and potentially broaden its suite of financial services in a market where regulatory requirements have traditionally constrained non-bank fintechs
The initiative comes amid a looser regulatory environment under the current US administration, which has signalled support for expanding competition in finance. PayPal’s bid reflects broader industry efforts by large fintech players to secure bank charters as a way to lower funding costs, improve customer trust, and reduce reliance on third-party banks for deposits and payment processing. The application underscores PayPal’s ambition to deepen its presence in core financial infrastructure while navigating evolving regulatory expectations in the US market.