SoLo Funds announced it has added a Mastercard integration so users can link their debit accounts to the peer-to-peer (P2P) lending platform.
The company noted there are 100,000 Visa cardholders who already use the SoLo Funds platform, which allows users to request and receive a P2P loan of less than $1,000 within minutes – faster than traditional ACH bank transfers, which can take up to three full business days to settle.
“By integrating with Mastercard, SoLo empowers even more users to deliver small-dollar, peer-to-peer loans to those who need them most,” Travis Holoway, CEO and co-founder of SoLo Funds, said in a press release. “This integration brings us a step closer to our goal of transforming the lending sector by providing timely access to small loans through everyday mobile users.”
Launched in 2018, the SoLo platform works by examining a user’s banking history, social capital and behavioral data to determine a score. Borrowers then submit an open request and connect with lenders to directly edit terms and define payback dates for interest-free loans under $1,000.
While the amount might be nominal, these small loans can be crucial to consumers. A recent survey found that 78 percent of American workers are living paycheck-to-paycheck, while more than 47 percent of Americans aren't able to cover a $400 cash emergency.
In addition, SoLo Funds offers free financial literacy courses to all of its users.
“The SoLo Funds online marketplace empowers people to give back to their local community by providing them with a way to lend money to their neighbor when she is in a crunch,” said Marlon Nichols, managing partner at Cross Culture Ventures. “Continuing to expand the capabilities of this platform is important, considering that most Americans live paycheck to paycheck and typically face financial peril when presented with modest (~$400) emergency expenses.”