BREAKING: PayPal files for bank charter in lending push

They filed to launch a Utah chartered industrial loan company with regulators, a move that would let PayPal hold deposits and fund loans directly.

This is not about becoming a traditional bank.

It is about control.

A bank charter would reduce reliance on partner banks and make small business lending cheaper and faster. PayPal has already provided over $30B in capital since 2013, but the economics change when you own the balance sheet.

Bigger picture.

US regulators are more open. Crypto firms like Circle, Ripple, and Paxos are pursuing bank charters. Now major payments players are following .

Fintechs no longer want to sit on top of banks.

They want to become one.