PayPal applies to form bank that can offer small business loans and savings accounts

Core Viewpoint - PayPal has applied for approval to establish PayPal Bank, aiming to enhance support for small businesses and improve operational efficiency [1][2]. Group 1: Business Expansion - The establishment of PayPal Bank will allow the company to offer loans to small businesses, thereby strengthening its business model [1]. - PayPal plans to provide interest-bearing savings accounts to its customers, expanding its banking-like services [3]. Group 2: Competitive Landscape - PayPal is competing with a growing number of fintech companies that are targeting traditional banks, indicating a shift in the financial services landscape [3]. - The company has already been offering credit lines to consumers, which aligns with its strategy to broaden its financial service offerings [3]. Group 3: Financial Performance - In October, PayPal reported a 7% year-over-year increase in quarterly revenue, reaching $8.42 billion, surpassing analysts' expectations [4]. - Despite the revenue growth, PayPal's stock has declined approximately 29% in 2025, contrasting with a nearly 16% gain in the S&P 500 index during the same period [4].