PayPal HQ, San Jose

PayPal HQ, San Jose

After a spate of recent partnership announcements to expand its acceptance network and P2P reach, PayPal is buying Swift Financial to boost its small business lending division, writes Paybefore (Banking Technology‘s sister publication).

The move comes four years after PayPal launched PayPal Working Capital, a business financing product that has provided access to more than $3 billion in funding to more than 115,000 small businesses, according to the company.

“Increasing access to capital is vital to the success of small businesses and is a strategic offering for PayPal, which drives merchants’ sales growth, increases processing volume and reduces merchant churn,” PayPal says.

Headquartered in the US state of Delaware, Swift Financial was established in 2006, and has provided funding to thousands of growing companies in the US. Swift’s technology will give PayPal the ability to assess supplemental information in its underwriting process, according to a blog post announcing the acquisition.

“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,” says Darrell Esch, vice-president and commercial officer, global credit for PayPal.

The acquisition, which is expected to close later this year, is subject to closing conditions.

The announcement comes hot on the heels of another SME lending specialist, Kabbage, announcing a $250 million investment from Japan-based Softbank.

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