Sci-tech

PayPal Scoops Up Swift Financial in Loan Expansion Deal

PayPal Scoops Up Swift Financial in Loan Expansion Deal”

In a move to strengthen the PayPal Working Capital program, the online payments giant has agreed to acquire small-business capital lender Swift Financial. PayPal has operated its own Working Capital unit since 2013, and has loaned more than $3 billion to small-businesses in total. It's made more than $3B of loans at up to $125K a clip to 115K small businesses. Terms of the deal were not disclosed.

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. These loans had values up to US$125,000 each and soon, thanks to the acquisition of Swift Financial, this limit will go up to US$500,000.

"This is an area where customers have been asking for more", Darrell Esch, vice president and commercial officer of global credit at PayPal, said in an interview.

PayPal is not the only tech company entering the lending space either. Through its Square Capital program, fellow digital payments company Square SQ has already passed $1 billion in loans since the program's launch in 2014. Amazon recently revealed that it had loaned SMEs $3 billion since the launch of Amazon Lending back in 2011, $1 billion of which came in the past year alone.

For PayPal, the acquisition should bolster a portion of the company's business that has seen increased competition over the years.

Shares of PYPL are now down about 1.9% in mid-morning trading.

Want the latest recommendations from Zacks Investment Research?



Like this

loading...
loading...

Latest


11 Августа 2017
Tesla Confirms an Autopilot Hardware Update for All New Vehicles
On Twitter , Elon Musk officially announced it as the first production electric auto to exceed 1,000km on a single charge. The auto maker's debt load increased significantly past year when it bought solar panel maker SolarCity.

11 Августа 2017
NextEra Energy, Inc. (NEE) Upgraded by BidaskClub to Buy
Groupon, Inc. (NASDAQ:GRPN) last session's volume of 5.83 million shares was lower than its average volume of 7.73 million shares. NextEra Energy Partners , 's dividend payout ratio is presently 76.38%. (NEE) stake by 16.67% reported in 2016Q4 SEC filing.

11 Августа 2017
'Dishonored: Death of the Outsider' Trailer Embarks On God Killing Adventure
Dishonored 2 standalone Dishonored: Death of the Outsider has a new trailer, in which some of Billie Lurk's powers get an airing. The new trailer shows off plenty of throat-slitting, sneaking, and even stealing of enemy's faces.

11 Августа 2017
You Can Play A Free Demo Of 'NBA Live 18' Starting Friday
Houston Rockets star and former Sun Devil basketball standout James Harden will grace the cover of EA Sports' " NBA Live 18 ". NBA Live 18 launches on the PS4 and Xbox One on September 18.

10 Августа 2017
ST Ives PLC (LON:SIV) Receives Buy Rating from Peel Hunt
Sei Investments holds 26,342 shares or 0.01% of its portfolio. 391,680 are held by Atalanta Sosnoff Cap Limited Liability Com. Nwq Investment Management Company Llc acquired 105,355 shares as Astrazeneca Plc (AZN)'s stock rose 16.26%.

10 Августа 2017
'Thank you Saskatchewan'; Premier Brad Wall announces retirement
Wall was elected as an MLA for the first time in 1999, representing the constituency of Swift Current. Wall says he will stay on until his successor is chosen.

10 Августа 2017
Modern slavery in United Kingdom more prevalent than previously thought
Mr Kerr said criminal charges were pending against those involved in the case. Mr Kerr said: "We have been shocked by the scale of what we have seen".

10 Августа 2017
New Orleans Saints at Cleveland Browns - 8/10/17 NFL Pick, Odds, and Prediction
It's also highly unlikely either of the Saints' first-round picks - cornerback Marshon Lattimore and left tackle Ryan Ramczyk - will play in the game as both missed recent practices due to undisclosed injuries.

10 Августа 2017
Stock Spirits Group PLC 18.6% Potential Upside Indicated by Berenberg
Liberum Capital reaffirmed their buy rating on shares of Equiniti Group PLC (LON: EQN ) in a research report released on Monday. The share price of RSA Insurance Group plc (RSNAY) was down -0.95% during the last trading session, with a day high of 0.00.

10 Августа 2017
Moon's Magnetic Field Lasted A Billion Years Longer Than We Thought
These rocks melted from the heat of such impacts and recrystallized in orientations determined by the moon's magnetic field . Testing that magnetism showed that in spite of the time that had passed, there was still a weak but non-zero field present.