PayPal is expanding its Working Capital service to the UK, according to TechCrunch. The UK is the first market outside of the U.S. to get PayPal’s lending platform. The platform, first launched in 2013, has already provided $140 million to businesses across the nation. According to James Barrese, CTO of PayPal, the expansion of Working Capital “is part of how the company is trying to reinvent itself and return to its tech roots to grow the platform” beyond e-commerce payments.
“All of our customer experiences are new or will soon be new,” Barrese told TechCrunch. “The checkout experience is modern and clean. We are also redoing wallet [and] we have a new way to offer merchant reporting and analytics.”
PayPal now competes with other online lending services like Kabbage and Square, which has recently enabled cash advances, many of which target the same types of businesses and customers.
However, PayPal’s services in the U.S. and in Europe are not one in the same. The company plans to offer advances rather than loans in Europe, as they have a banking license in Luxembourg. This means that businesses will pay PayPal when they make money, but won’t have to pay when they are not.
PayPal says that it will “lend up to 8 percent of what a merchant typically makes on the PayPal platform” but did not indicate further details about interest rates.
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