PayPal Applies for Bank Charter

Will PayPal Bank strengthen the company, or fail to tackle its most significant challenges?

Published 11 hours ago·Updated 9 hours ago

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Above: A PayPal logo seen displayed on a smartphone in Poland on Dec. 4, 2025. Image credit: Mateusz Slodkowski/SOPA Images/LightRocket/Getty Images

The Spin

Narrative A

PayPal Bank promises to tackle the capital crisis strangling small businesses across America and strengthen the company’s position. A bank charter would enable PayPal to bring lending in-house — allowing the company to cut costs, offer more competitive business loans and reduce its dependence on third parties for capital.

PayPal

Narrative B

PayPal's banking ambitions will not resolve its primary issue — the market share it continues to lose to Apple and Shop Pay in the mobile wallet sector. The industrial bank charter might cut third-party costs, but it does not address why consumers are abandoning PayPal's checkout experience for more integrated competitors.

GuruFocus

Parkev Tatevosian on Youtube