PayPal officially announces that it will launch its own credit business

Absrtact: July 31, PayPal, a subsidiary of EBay, officially announced in Wednesday local time that the company will further challenge the market position of banks and traditional lending companies by launching its own credit business. It is reported that the headquarters is located in San Jose (San Jose) PayPal public

July 31, ebay's subsidiary, PayPal, announced in Wednesday local time that it would further challenge the market position of banks and traditional lending companies by launching its own credit business.

It is reported that the San Jose (San Jose) PayPal Company will first be outside the United States for small micro-enterprises and consumer personal lending services expansion, and its existing credit payment business "Bill Me Later" renamed "PayPal Credit" (PayPal Credit) to launch the market.

"This is the latest move by PayPal to bring credit into its business center stage," said Steve Aluoka, vice president of PayPal's Global credit card department, Allocca. ”

It is reported that "PayPal credit" will soon be in the United Kingdom, Germany, the two markets, and the company's small micro-enterprise Credit Project "PayPal sharable Capital" will be first for the United Kingdom and Australia, the two overseas markets launched. In this respect, PayPal small Micro Enterprise loan Business Department Vice President Darrell-Darrell Esch said: "The company plans to the ' PayPal sharable Capital ' business before the end of the year to enter at least two other major markets." ”

It should be said that "PayPal sharable capital" business with the traditional enterprise lending business has a big difference, because the service is not borrowed from the traditional lending business need to use the approval means, but mainly based on their understanding of the customer to determine their own lending amount. In other words, PayPal determines the loan amount based on the customer's previous collaboration with PayPal and ebay. Also, since this approval method calls all of PayPal and ebay's own data, PayPal may be able to complete a loan application in a matter of minutes.

It should be noted that PayPal does not charge interest to the borrower, but the borrower needs to first pay a lump sum fee to PayPal, which will be based on the amount of money borrowed by the borrower and the time of repayment (generally less than 10% of the principal). For now, corporate customers through the "PayPal sharable Capital" of the maximum loan amount of 60,000 U.S. dollars.

It is reported that since PayPal joined hands with Utah State Industrial Bank last September WebBank trial run "PayPal sharable Capital" service, the company has accepted more than 20,000 enterprises loan applications, the total amount of loans over 150 million U.S. dollars. Aluoka says about 60% of all loan clients are ebay sellers.

It is obvious that the main current of PayPal's more financial services is to further enhance its overall payment network usage and user participation. Because in general, only when a platform has a wider access to funds, people will be more willing to sell or buy goods here.

"When customers start using PayPal to borrow products, their spending on the platform usually increases by about 30%." El Chi said at last. (Tom)