PayPal announced Monday that it has applied to form PayPal Bank, which would allow the company to offer loans to small businesses.

The move, subject to review by the FDIC and Utah’s Department of Financial Institutions, aims to expand PayPal’s banking-like services and support economic growth.

The bank would also offer interest-bearing savings accounts to customers, complementing existing credit lines, CNBC has reported.

CEO Alex Chriss said the initiative will strengthen efficiency and help small business growth across the U.S.

Following the announcement, PayPal shares rose 1.5% in extended trading, despite the stock having fallen about 29% so far in 2025.