Business

PayPal Seeks Utah Bank Charter to Expand Small Business Lending

Published

4 months ago

December 16, 2025

PayPal has applied to establish a Utah-chartered bank, a move that would allow the company to hold deposits and increase lending capacity to small businesses. The San Jose-based online payments giant aims to strengthen its banking operations and offer more direct financial services, reducing its reliance on third-party partners.

While PayPal already provides small-business loans through products like PayPal Working Capital, it does so mainly in partnership with traditional banks, using external balance sheets. Creating PayPal Bank would allow the company to fund loans more directly, operate with greater efficiency, and maintain increased control over deposit and lending activities.

“Securing capital remains a significant hurdle for small businesses striving to grow and scale,” said Alex Chriss, PayPal president and CEO. “Establishing PayPal Bank will strengthen our business and improve our efficiency, enabling us to better support small business growth and economic opportunities across the US.”

In addition to lending, PayPal expects to offer interest-bearing savings accounts to customers, expanding its financial product offerings beyond payments and credit services. The company already holds a banking licence in Luxembourg, allowing it to provide certain banking services in Europe.

PayPal is pursuing a state-chartered industrial loan company (ILC) licence in Utah. ILCs are a special category of banks allowed in only a few US states, including Utah, and can be owned by non-bank parent companies such as fintech firms or retailers. Unlike traditional banks, ILCs are not required to register as a bank holding company under the Bank Holding Company Act, which subjects the entire corporate group to Federal Reserve oversight.

Utah has long been a hub for ILCs due to its established regulatory framework and experience overseeing banks owned by non-banking corporations. Major companies with Utah-based ILCs include Ally Bank, originating from General Motors’ financing arm, and Toyota Financial Savings Bank, which supports Toyota’s auto-financing business.

If PayPal’s application is approved, Mara McNeill will serve as President of PayPal Bank. McNeill brings over 25 years of experience in banking, commercial lending, and private equity. Before joining PayPal, she oversaw a similar transition to an ILC as President and CEO of Toyota Financial Savings Bank.

PayPal’s move signals a growing trend of fintech companies seeking more control over financial services. By establishing its own bank, the company hopes to streamline operations, offer more flexible products to small businesses, and strengthen its foothold in the US financial services market.

The application is now under review by Utah regulators, who will assess the company’s suitability to operate a state-chartered bank. Approval would mark a significant expansion for PayPal, combining its payments expertise with a broader banking role in the domestic market.

Business

US States Outpace EU Economies in Wealth Per Capita While Europe Remains Competitive in Total GDP

Published

9 hours ago

April 12, 2026

Web Reporter

A fresh comparison of economic performance between Europe and the United States highlights a widening divide in wealth creation and living standards, with US states consistently outperforming major European economies in GDP per capita, even as Europe remains competitive in overall output.

Data drawn from Eurostat, the US Bureau of Economic Analysis and the International Monetary Fund show that Germany leads all selected economies with a GDP of €4.47 trillion in 2025. California follows closely at €3.76 trillion, reinforcing its position as the largest US state economy and one of the biggest economic units globally.

France ranks third with €2.98 trillion, ahead of Texas at €2.57 trillion. Italy records €2.26 trillion, while New York stands at €2.18 trillion. Spain comes next with €1.69 trillion, followed by Florida at €1.62 trillion. The Netherlands posts €1.18 trillion, and Illinois closes the list at €1.06 trillion.

The ranking shows a striking pattern: European countries and US states alternate throughout the table rather than clustering by region, underscoring how closely matched the two economic systems are in total output.

The picture shifts sharply when measured by GDP per capita. New York leads at €108,444, followed by California at €96,887. Illinois records €83,490, while Texas stands at €82,058, all above the US national average of €79,587. Florida ranks lowest among the US group at €69,706.

By comparison, the Netherlands tops the European group at €62,537. Germany follows at €51,817, then France at €42,671, Italy at €37,162, and Spain at €32,475. The EU average stands at €39,970, significantly below all major US states in the comparison.

When adjusted for purchasing power standards, the gap remains visible. New York again leads at 108,500 international dollars, followed by California at 90,300. Illinois and Texas remain strong at 89,300 and 87,600 respectively, while the US average stands at 89,599.

In Europe, the Netherlands posts 84,035, Germany 73,553, France 66,061, and Spain again ranks lowest among the group. Italy also falls below the EU average of 64,870.

However, the comparison is not one-sided. Research also shows that severe poverty is more pronounced in the United States than in Western Europe. A University of Oxford researcher noted that it takes about 63 minutes of work in the US to earn the equivalent of one international dollar, roughly double the time required in Germany, France and the United Kingdom.

The findings underline a dual reality: while US states generate higher income per person, European economies maintain stronger relative outcomes in certain measures of social welfare and income distribution.

Business

Fuel Prices Surge Across Europe as Middle East Crisis Pushes Oil Above $100

Published

2 days ago

April 10, 2026

Web Reporter

Fuel prices across Europe have risen sharply in recent weeks following the escalation of tensions in the Middle East, with both petrol and diesel costs climbing significantly since late February.

The increase comes as Brent crude oil prices moved above $100 per barrel after a joint strike by the United States and Israel on Iran, triggering concerns about global energy supply. The rise in crude prices has quickly filtered down to consumers across European countries.

According to the European Commission, the average price of Euro-super 95 petrol in the European Union stood at €1.871 per litre at the end of March, while diesel reached €2.076 per litre. Compared to late February, petrol prices are about 15 percent higher, while diesel has surged by around 30 percent.

There are wide differences in fuel prices across EU member states. The Netherlands recorded the highest diesel prices at €2.46 per litre, followed by Denmark and Germany. Other countries with above-average diesel costs include Finland, Belgium, France and Ireland.

At the other end of the scale, Malta reported the lowest diesel price at €1.21 per litre, significantly below the EU average. Hungary, Slovenia and Bulgaria also ranked among the least expensive markets for diesel. In several countries including Spain, Slovakia and Croatia, diesel prices remained below €2 per litre.

Petrol prices show a similar pattern. The Netherlands again recorded the highest price at €2.33 per litre, with Denmark and Germany also among the most expensive. Greece and France reported petrol prices above €2 per litre as well.

Malta had the lowest petrol price at €1.34 per litre, followed by Bulgaria. Other relatively cheaper markets included Slovenia, Hungary and Spain, where prices remained below €1.60 per litre.

The data also highlights the role of taxation in fuel pricing. Taxes account for a significant portion of costs across Europe, making up more than half of petrol prices and nearly 45 percent of diesel prices on average. The share varies by country, with Slovenia recording one of the highest tax proportions on petrol, while Bulgaria had one of the lowest.

Despite the shift toward cleaner energy, traditional fuels continue to dominate the European vehicle market. According to Eurostat, petrol-powered cars accounted for 66.6 percent of new registrations in 2024, followed by diesel vehicles at 16.9 percent and fully electric cars at 13.5 percent.

The latest rise in fuel costs underscores the continued sensitivity of European energy markets to geopolitical developments, with consumers facing increased expenses as global tensions persist.

Business

Oil Prices Surge as Strait of Hormuz Closure Shakes Markets

Published

3 days ago

April 9, 2026

Web Reporter

The brief sigh of relief across global markets lasted barely a day. Brent crude climbed sharply back towards $100 a barrel on Thursday after Iran moved to close the Strait of Hormuz, sending a clear signal that the fragile Middle East ceasefire was already fracturing.

The global benchmark was trading at $98.61 a barrel in early afternoon dealings, up about 4 percent, after plunging as much as 16 percent the previous day to below $91. That earlier drop had been driven by optimism that a two-week pause in hostilities between the United States and Iran could ease tensions and stabilize energy flows.

Iran’s move to shut the strategic waterway followed Israeli airstrikes on Hezbollah targets in Lebanon, which Tehran described as a violation of the ceasefire. The Strait of Hormuz is a vital route for global energy supplies, carrying roughly a fifth of the world’s oil and gas. Its closure has raised immediate concerns among governments and businesses about supply disruptions and rising costs.

Sultan Al Jaber, chief executive of Abu Dhabi’s state oil company Adnoc, said Iran appeared to be using control of the strait as a political tool rather than ensuring free navigation. Analysts say such actions could deepen uncertainty for industries that rely heavily on stable energy supplies.

Nigel Green, chief executive of financial advisory firm deVere, warned that the situation leaves a significant share of global oil flows exposed to geopolitical risk. For small and medium-sized businesses already dealing with high energy costs, the renewed volatility adds further pressure.

Stock markets reacted negatively to the developments. The FTSE 100 fell 0.2 percent after posting strong gains the previous day, while Germany’s DAX dropped 1.4 percent and France’s CAC 40 declined 0.7 percent. In Asia, major indexes in Japan, South Korea, and China all closed lower.

Wall Street, which had rallied strongly on Wednesday with the S&P 500 rising 2.5 percent and the Dow Jones Industrial Average gaining nearly 3 percent, was expected to open lower as investor confidence weakened.

US President Donald Trump said American forces would remain in the Gulf until a lasting agreement is secured and respected, warning of serious consequences if the situation deteriorates further.

Meanwhile, Israel intensified its military operations in Lebanon, carrying out its heaviest strikes since the conflict with the Iran-backed Hezbollah group escalated last month. Reports indicate that more than 250 people have been killed in the latest wave of attacks.

The renewed instability highlights the continued vulnerability of global energy markets to geopolitical tensions. With oil prices approaching $100 a barrel once again, businesses are facing renewed uncertainty, particularly in sectors such as manufacturing and logistics that are highly sensitive to fuel costs.