1. PayPal applied to establish a bank amid favorable regulations. 2. This move may enhance operational capacity and revenue sources.
FAQ
Why Bullish?
Establishing a bank could diversify revenue and bolster PayPal's market position, similar to previous newly established banking ventures by fintech firms that resulted in share price increases.
How important is it?
The article indicates a strategic move for growth in banking, potentially attracting investment and increasing revenue, making it highly relevant to PYPL's price movement.
Why Long Term?
Banking establishment may take time to yield benefits, akin to Square's banking venture which positively influenced its growth trajectory over several quarters.