On August 10, PayPal Holdings, Inc. (NASDAQ:$PYPL) announced on their website that they have agreed to acquire online lending firm Swift Financial. The acquisition is thought to help PayPal expand their business which offers working capital to merchants, Reuters reports.
For those who don’t know, Swift Financial provides credit to businesses via advances and loans. The Delaware-based company will let PayPal grant loans to firms that process payments through its platform and will then provide credit to businesses that are not yet users of its services.
Not only will PayPal be eligible to take advantage of Swift’s capabilities and data, it will also be able to offer term loans of up to $500,000 to its larger merchants.
“This is an area where customers have been asking for more,” Darrell Esch said, who is the VP and commercial officer of global credit at PayPal.
Keep in mind that the terms of the acquisition have not been disclosed, and they are still subject to regulatory approval.
During Thursday morning trade, PayPal shares were falling about 1%.
Overall, if you’re interested in finance, and looking for different types of investments, don’t forget about the credit services sector! With PayPal’s Latest Acquisition, it might just be the way to go.
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