Paypal is looking to increase its presence in small business lending with its purchase of Swift Financial. Swift was founded in 2006 and has provided working capital to more than 20,000 small businesses. Although terms have not been revealed, the goal is to utilize Swift’s offerings to help Paypal become more competitive in small business lending with recent market changes in the pass 5 years.
“We know and value Swift’s technology platform and people, and we believe their talent and capabilities will further strengthen our overall merchant value proposition,” PayPal’s Darrell Esch wrote in announcing the deal. “Building upon an existing commercial relationship, the acquisition of Swift Financial will enable us to better serve small businesses by enhancing our underwriting capabilities to provide access to affordable business financing solutions to more businesses to help them grow and thrive.”
This is an interesting move from Paypal during a time where small business lending is decreasing slightly with the increase of banking loans for small business. Despite this, there are many opportunities in fintech and no one company that has become the “Amazon” or “Walmart” of the industry. With this new announcement expect the market to continue its unpredictable movement in terms of industry leaders.