PayPal Announces Credit Volume Hits $50 Billion

At the beginning of February, PayPal Holdings Inc. announced that it had lent $50 billion to American consumers since it bought the BillMeLater lending service over a decade ago. Back in 2008, PayPal purchased BillMeLater – so-called traditional lender – which enabled merchants to offer instant credit to their customers. Since then, the company has been busy pushing its efforts to generate revenues from its Venmo peer-to-peer payment service by making subscription payments to the Tidal music-streaming service available through Venmo.

Now called PayPal Credit, the lending service generated nearly $10 billion in U.S. totally payment volume in 2018 alone; this includes more than $2 billion across November and December. The beginning of this month, PayPal Credit announced that it had reached $50 billion in total payment volume. According to PayPal, the company sees PayPal Credit as an alternative to conventual lending – a means of encouraging PayPal purchases.

In a recent blog post, Darrell Esch, vice president and commercial officer for PayPal Credit shared, “At PayPal, we’re committed to using our platform to democratize financial services and break down barriers to make it easier for people and businesses to manage their financial lives and pursue their goals.”

“PayPal Credit offers a flexible, revolving line of credit available in the PayPal wallet that customers can use again and again at any merchant that accepts PayPal Credit, without the need to reapply for each transaction, bringing in billions of dollars in open to buy to PayPal merchants.”

PayPal Credit is available in more countries than just the U.S. According to PayPal, the United Kingdom and PayPal are “seeing significant growth year over year”. PayPal did share that last summer (July) it did remove itself from the direct risk of lending by selling about $6.9 billion in PayPal Credit receivables to Synchrony Financial. Another announcement, Tidal, reported that Venmo is now a payment option for American subscribers.

“Tidal customers in the United States can now set up monthly payments for the service using their Venmo balance, linked bank account, credit card or debit card,” Sweden-based Tidal said in a news release. “This integration represents Venmo’s first partnership with a music-streaming subscription service.”

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Author Bio:Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards. His understanding of the industry and rms card machines has helped thousands of business owners.