Economy

PayPal Provides $5M In Grants To Support Minority Businesses

PayPal

PayPal Holdings Inc. provided $5 million in grants to support Black-owned businesses in the U.S. recovering from the economic impact of COVID-19 pandemic, the company announced Friday (Sept. 25).

The grants are part of the San Jose, California-based worldwide online payments system’s $530 million pledge made earlier this year to strengthen minority communities and fight for economic equality and racial justice.

“To rebuild and succeed over the long-term, it’s important for these businesses to have a strong ecosystem of support,” said PayPal CEO Daniel Schulman in a statement. “Through our grants to effective community nonprofits, PayPal is working to support and strengthen Black-owned businesses and catalyze the critical work these organizations are doing to sustain Black-owned businesses and communities now and in the future.”

The nonprofits include: 1863 VenturesAssociation for Enterprise OpportunityAfrican American Alliance of CDFI CEOsBaltimore Business LendingBlack Girl VenturesChicago Neighborhood Initiatives Micro Finance GroupEnrichHERExpanding Black Business Credit InitiativeGrameen AmericaKivaMORTARNebraska Enterprise FundNeighborhood Development CenterOperation HOPEOpportunity FundRising Tide CapitalRussell Center for Innovation & EntrepreneurshipStart Small, Think BigWalker's Legacy and Women's Opportunity Resource Center.

In addition to the donations, PayPal employees volunteered to work with these nonprofits. The company has pledged to match $2 for every $1 employees donate and $20 for every volunteer hour contributed to the organizations, up to $500,000.

In an interview with PYMNTS, John Rainey, PayPal’s chief financial officer, said executives have learned to pivot amid the myriad of challenges this year with ground-level, tech-driven insights that move beyond tracking money flows.

He said to do so they must take the long-term view while being mindful of the intersection of finance, operations and the customer experience while finding new methods to measure and address pain points.

“CFOs get typecast more than other executives as being just debit- and credit-oriented,” Rainey told PYMNTS. “That may have been true some period of time ago. I think it’s very different today.”

A study conducted by PayPal and PYMNTS revealed that 40 percent of customers are shopping more digitally than physically.

Of those who previously reported plans to get back out there as soon as possible, about half have since reconsidered that proposition and decided they’d rather wait for a vaccine.

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WATCH LIVE: HOW WE SHOP – TUESDAY, NOVEMBER 10, 2020 – 12:00 PM (ET)

New forms of alternative credit and point-of-sale (POS) lending options like ‘buy now, pay later’ (BNPL) leverage the growing influence of payments choice on customer loyalty. Nearly 60 percent of consumers say such digital options now influence where and how they shop—especially touchless payments and robust, well-crafted ecommerce checkouts—so, merchants have a clear mandate: understand what has changed and adjust accordingly. Join PYMNTS CEO Karen Webster together with PayPal’s Greg Lisiewski, BigCommerce’s Mark Rosales, and Adore Me’s Camille Kress as they spotlight key findings from the new PYMNTS-PayPal study, “How We Shop” and map out faster, better pathways to a stronger recovery.

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