Payment players PayPal and Square strike gold in financing small businesses
San Francisco Business Times | May 15, 2015
Payment companies, including PayPal and Square, are finding it quite lucrative to leverage the data they collect on clients’ sales and related information to extend financing to small businesses.
PayPal Working Capital — a unit of eBay’s (NASDAQ: EBAY) PayPal, which is in the process of splitting from the online auctioneer — said Thursday that it has provided $500 million in business loans to more than 40,000 businesses globally. The financings have gone primarily to small and mid-sized businesses that would have found traditional bank financing more difficult to get, if available at all.