PayPal (NASDAQ: PYPL), a payments Fintech that is now more of a neobank, has reported over $30 billion in loans since 2013. PayPal said that online loan originations, including cash advances, had surpassed 1.4 million for more than 420,000 business accounts.
PayPal offers credit products like PayPal Business Loans and PayPal Working Capital in the US, UK, Germany, France, Australia, and the Netherlands.
PayPal Business Loans, launched in 2017, are term loans with fixed repayments that are not exclusively for businesses that use PayPal to process payments.
PayPal Working Capital, launched in 2013, is repaid as a percentage of a business’s PayPal sales.
Michelle Gill, EVP and GM of SMB and Financial Services at PayPal, commented that access to capital is an ongoing challenge for SMEs.
“Traditional business loans are not only difficult to secure for small businesses, but the application process can be challenging and prohibitively time consuming. PayPal’s financing solutions have a streamlined online application process with no lengthy paperwork or extensive credit checks, and approved PayPal loans are funded within minutes. We launched PayPal Working Capital and PayPal Business Loan to serve this important need, and to provide a quick and responsible way to inject much needed capital to help fuel small business growth.”
PayPal reports solid feedback from users with a Net Promoter Score of 76 and 85 for PayPal Working Capital and PayPal Business Loan respectively.
