PayPal Stock Pops After Hours: Here's Why

PayPal Holdings Inc (NASDAQ:PYPL) shares are inching higher in extended trading on Monday after the company announced that it submitted applications to establish a bank.

• PayPal Holdings stock is moving in positive territory. What’s driving PYPL shares up?

What To Know: PayPal said it submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to establish PayPal Bank.

PayPal expects the establishment of a bank to enable it to provide business lending solutions more efficiently to small businesses in the U.S.

“Securing capital remains a significant hurdle for small businesses striving to grow and scale,” said Alex Chriss, president and CEO of PayPal.

PayPal Bank expects to offer interest-bearing savings accounts to customers in addition to providing small business lending. The proposed bank would also seek direct membership in the U.S. with card networks to complement processing and settlement activities.

If the company’s applications are approved, customer deposits at PayPal Bank would be eligible for FDIC insurance coverage. 

Mara McNeill has been selected to serve as the president of PayPal Bank.

PYPL Price Action: PayPal shares were up 1.33% at $61.55 at the time of publication on Monday, according to Benzinga Pro.

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