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PayPal is Now Financing Online Merchants in the UK


Posted on Apr 08, 2013

By: Leilani Doyle

If the banking industry is watching any serious threat to their traditional business model, they surely have PayPal in their sites. PayPal is without question, the most disruptive payments technology to emerge from the dot-com era. WIth each day they start looking more and more like a bank, without having to adhere to all those nasty banking regulations.

PayPal is now dipping their toe in the water to test small business lending. According to the company spokesperson, PayPal is beginning to offer select merchants advances of up to £25,000. PayPal reportedly bases the amount of the advance in proportion to the merchants PayPal sales, giving a new spin on traditional underwriting practices.

Small business lending is a key factor in many banking relationships. If PayPal can crack this code and start opening up some capital for merchants that are looking to expand, this should bode well for the economy as a whole. 

Read the complete article at PYMNTS.com.