B2B Payments

BigCommerce Links Financing Via PayPal

Online commerce platform BigCommerce is now linking its sellers to financing via PayPal.

The companies announced news on Friday (Nov. 17) that BigCommerce will connect businesses on its platform to PayPal Working Capital. The move comes about as part of a broader expansion of their partnership that also sees BigCommerce sellers gaining access to PayPal’s consumer financing offering, PayPal Credit, as well as its B2B marketing unit, PayPal Marketing Solutions.

Sellers on the BigCommerce platform can access tools via a new mobile app, the companies said.

“BigCommerce and PayPal have much in common at the core of our businesses, including providing businesses with the tools they need to succeed,” said PayPal Vice President and General Manager of Global Distribution Steve Fusco in a statement. “Through our expanded relationship with BigCommerce, we are delivering access to innovative, fully integrated products and services that help merchants increase sales and leverage order value.”

Businesses on the BigCommerce platform must meet eligibility requirements to access PayPal Working Capital, which offers small business financing with fixed fees based on PayPal sales and historical data. According to PayPal, most borrowers use the solution to purchase more inventory.

The two launched their partnership in 2013 in a deal that allows BigCommerce to let its sellers accept PayPal payments, powered by Braintree; BigCommerce’s own CEO, Brent Bellm, hired in 2015, is a former PayPal executive.

PayPal has expanded its Working Capital unit in recent months, having acquired Swift Financial earlier this year. The deal enables PayPal to offer larger working capital loans to business customers while still using PayPal transaction data from those borrowers to underwrite the financing.

As of last August, PayPal said it gave out more than $3 billion to businesses via Working Capital, which launched in 2013. The acquisition lets PayPal expand the value of loans it can provide from $125,000 up to $500,000.


New PYMNTS Report: The CFO’s Guide To Digitizing B2B Payments – August 2020 

The CFO’s Guide To Digitizing B2B Payments, a PYMNTS and Comdata collaboration, examines how companies are updating their AP approaches to protect their cash flows, support their vendors and enable their financial departments to operate remotely.