PayPal has applied to establish a US industrial bank focused on small business lending. The application was submitted to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation, with the proposed entity structured as a Utah-chartered industrial loan company.

The filing marks a structural shift in how PayPal could run parts of its lending business in the US, rather than a change in its customer-facing products.

Why an industrial bank structure matters

An industrial loan company allows a non-bank parent to own a regulated bank. This structure makes it possible to take deposits and issue loans directly, while operating outside the traditional bank holding company framework.

For PayPal, this is relevant because small business lending has been part of its offering for years. Since 2013, the company has facilitated more than $30 billion in loans and working capital to over 420,000 business accounts globally. Much of that activity has relied on partner banks.

A chartered industrial bank would allow more of that lending to sit directly within PayPal’s own regulated entity.

What the proposed bank would do

According to the application, the bank would focus on small business lending. It would also offer interest-bearing savings accounts and seek direct membership in US card networks.

If approved, deposits held at the bank would be eligible for FDIC insurance. From a product standpoint, this does not introduce new consumer features. The change is about balance sheet control, funding sources, and operational efficiency.

These are less visible changes, but they tend to shape long-term economics.

Leadership and regulatory scrutiny

PayPal has named Mara McNeill as president of the proposed bank. Her background is in commercial lending and financial services, which aligns with the operational demands of running a regulated institution.

Regulatory review will focus on governance, risk management, capital, and compliance. Approval is not guaranteed, and the process is typically detailed and time-consuming.

A familiar path for scaled fintechs

As fintech platforms grow, payments, lending, and deposits tend to converge. At that stage, dependence on third-party banks can limit flexibility and margins.

PayPal’s application reflects that reality. The company already operates at bank-like scale in parts of its business. The charter would formalise that position within the US regulatory framework.

Key takeaways for fintech startups

A few grounded lessons stand out:

• Industrial bank charters offer structural control, not product novelty
  
  
• Lending scale increases pressure to own more of the stack
  
  
• Regulatory readiness needs to precede growth, not follow it
  
  
• Partner banks work well early, but become constraints at scale
  
  
• Governance and risk capabilities matter as much as product design

If you are approaching similar inflection points, Your Fintech Story helps founders think clearly about structure, regulation, and scale before decisions become expensive to reverse. Get in touch.

Revolut has been expanding its scope for years. What began as a payments app now covers accounts, cards, investing, crypto, insurance, and travel utilities. The next step moves into everyday infrastructure: a full mobile phone plan, sold and managed directly inside the Revolut app. The company has confirmed plans to launch monthly mobile tariffs, starting with the UK and Poland, with a phased rollout across other European markets later. The aim is straightforward. Replace the traditional mobile operator relationship with something simpler and fully app-based.

What’s actually being launched

The mobile plan is a subscription service delivered via eSIM. Activation, number transfer, billing, and usage controls all live inside the app. Users can keep their existing number or take a new one, and there is no long-term contract involved.

The package includes unlimited domestic data, calls, and SMS, plus a roaming data allowance of 20 GB usable across the EU and the United States. Pricing is set aggressively, with an introductory price of £12.50 per month and a standard price of £14.99 per month for customers joining after the introductory period ends. This is meant to work as a primary line, not as a travel add-on or secondary SIM.

Where the advantage really comes from

Revolut is not building mobile networks. Like other digital-first entrants, it operates as an MVNO, relying on existing telecom infrastructure. That part is familiar.

What matters more is distribution. Revolut already owns the customer relationship, the billing layer, and a daily touchpoint. Millions of users open the app regularly to manage money, subscriptions, and travel. Adding mobile connectivity removes friction telecom operators have struggled with for decades, from store visits and contract complexity to unclear bundles and painful cancellation processes. The mobile plan becomes another controllable line item inside a system users already trust.

Why the “unlimited” angle lands

Unlimited plans exist across Europe, but they are rarely simple in practice. Long commitments, layered pricing logic, and vague fair-use limits are common. Revolut’s framing follows the logic fintech users already understand: one price, monthly control, visible usage, and the ability to leave without negotiation.

For people who already manage critical services through apps, that feels natural. The mobile plan behaves more like software than a utility contract.

How this fits the bigger picture

The pattern is consistent with how Revolut has approached other categories. Enter with sharp pricing, integrate deeply into the app, and increase daily relevance. Mobile connectivity raises switching costs without contractual lock-in. When your bank account, cards, subscriptions, travel tools, and phone number all sit in one interface, leaving becomes inconvenient even if it remains technically easy.

That kind of retention compounds quietly over time.

Key takeaways for fintech startups

A few grounded lessons are worth pulling out:

• Adjacent expansion works best when you already own the primary interface
  
  
• Recurring utilities fit naturally into fintech billing and UX models
  
  
• Clear pricing and easy exits can outperform contractual lock-in
  
  
• Distribution and engagement often matter more than owning infrastructure

If you’re considering adjacent products or platform expansion, Your Fintech Story helps fintech teams think through strategy before execution gets expensive. Reach out if you want a grounded second opinion.