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Paypal has acquired online lender Swift Financial, which had raised a $30m Series D in 2016, in order to offer loans to the larger businesses that process payments through its platform. Along with Square Capital, Paypal is leading the charge among payments companies introducing lending as a new way to monetize customers.
PayPal has been offering short-term loans to its smaller merchants through a division called PayPal Working Capital since 2013. It uses data on the payments it processes for its merchants to assess their credit-worthiness. The company has lent more than $3 billion to 115,000 small businesses in loans of up to $125,000 since inception. The deal will enable PayPal to start offering term loans of up to $500,000 to its larger merchants and take advantage of Swift Financial’s data capabilities to lend to companies that may not be long-time users of its services.
https://www.reuters.com/article/us-paypal-m-a-swiftfinancial-idUSKBN1AQ1JM
