Submitted paperwork; PayPal applies to become a bank in the U.S.

United States, Thekabarnews.com – PayPal, a global fintech behemoth, has officially applied to the US government for permission to operate as a bank. This is a big step for the company, which is mostly known for its digital payments industry.

PayPal said in a statement this week that the registration will let the company offer savings accounts that earn interest and loans to small businesses.

If allowed, this move will put PayPal more directly in the U.S. banking system, especially when it comes to lending and deposit products to small and medium-sized businesses.

PayPal’s move into banking is part of a bigger change in the world of finance, where tech companies are starting to compete with traditional banks.

Several cryptocurrency and fintech companies tried to get banking charters and licenses in the United States earlier this year, and this is comparable to what they did.

Analysts think that PayPal’s application is part of a long-term plan to make more money and build stronger relationships with customers, especially small businesses that are the backbone of its payments system.

But getting a banking license in the U.S. is a long and complicated procedure that requires a lot of extra regulatory attention. Before PayPal can start acting like a bank, it will have to meet tough rules for capital sufficiency, risk management, and consumer protection.

If PayPal succeeds, it could emerge as a significant player at the intersection of fintech innovation and traditional banking. This could speed up the global change of digital financial services.