PayPal files with Utah and the FDIC to launch PayPal Bank, an industrial loan company offering small business lending and FDIC-insured savings accounts.
PayPal Holdings Inc (NASDAQ:PYPL, XETRA:2PP) announced that it has filed applications with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to establish a Utah-chartered industrial loan company, potentially creating PayPal Bank. The move represents a shift from PayPal's traditional payments focus toward offering more comprehensive banking services, including small-business lending and interest-bearing deposit accounts.
PayPal Holdings remains a "Strong Buy," combining robust growth, rising profitability, and ongoing innovation at an absolute valuation I find compelling. PYPL's strategic shift away from low-margin PSP transactions is boosting core transaction growth and deepening engagement among valuable customers. Venmo and Buy Now, Pay Later ("BNPL") offerings are driving double-digit payment volume and user growth, reinforcing PYPL's competitive moat.
Paypal (PYPL) reached $60.74 at the closing of the latest trading day, reflecting a -1.49% change compared to its last close.
PayPal said it is ready to venture deeper into small business lending. The company applied to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corp. to create PayPal Bank, a proposed Utah-chartered industrial loan company, according to a Monday (Dec. 15) press release provided to PYMNTS.
Fintech gains momentum as StoneCo, Block and PayPal reshape payments, lending and banking, drawing investors to fast-growing digital finance platforms.
Bank of America on Thursday downgraded PayPal Holdings Inc (NASDAQ:PYPL, XETRA:2PP) to “Neutral,” warning that the company's effort to revive growth in its core branded checkout business is taking longer than expected and that 2026 is shaping up to be an investment-heavy year. Analysts said the firm is stepping to the sidelines until there is clearer evidence that PayPal's turnaround is gaining traction.
PYPL expands its ecosystem through new partnerships across major platforms to boost seamless commerce.
I double upgrade PayPal to a buy, citing overlooked long-term growth initiatives and a deeply discounted forward P/E near 11.5. PYPL is gaining traction in BNPL and Venmo, while innovating in agentic AI and optimizing legacy PSP for profitability. Despite sluggish near-term growth and FY2025 guidance, resilience in transaction activity and cash flow supports a constructive long-term view.
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PayPal Holdings, Inc. faces persistent headwinds in 2025, with consumer sentiments and competitive pressures weighing heavily on recovery prospects. Despite robust free cash flow ($6B–$7B) with a sticky consumer ecosystem, the market is dithering over mounting uncertainties. The market appears to be pricing in lower clarity through 2026 or later, as lower average order values and affordability concerns impact branded checkout growth.
PYPL flags softer Q4 branded checkout growth and rising 2026 OpEx as it pushes investments.