Banking Charter

Fintech firm Mercury has secured $200 million in Series D funding, valuing the company at $5.2 billion, a 49% increase in 14 months. Led by TCV and supported by existing investors like Sequoia Capital, Mercury serves over 300,000 startups. The company has achieved profitability for four years, with annualized revenue reaching $650 million. Mercury is also pursuing a federal banking charter to enhance its offerings and financial operations, aiming for public trading rather than acquisition.

PayPal is applying for a U.S. banking charter to establish “PayPal Bank.” This strategic move, announced by CEO Alex Chriss, aims to enable direct lending to small businesses, offer interest-bearing savings accounts, and expand its financial services. The company seeks greater control over its offerings, improved efficiency, and a deeper customer relationship, positioning itself to compete more aggressively in the financial services sector and capture more of the customer’s financial life.