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June 30, 2017

Paypal makes strategic investment in online lender Lendup

PayPal has made a strategic investment in LendUp, a San Francisco-based fintech startup that offers loans to those who are considered too risky by banks. Terms of the deal were not revealed.

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Founded in 2012 by CEO Sasha Orloff and CTO at Zynga, LendUp offers several types of credit products, including loans and credit cards. It also provides financial education, access to credit reporting and gamification for responsible lending behavior.

Commenting on the development, Orloff said: “We’re building our own technology to create new financial products and experiences for the 56% of Americans shut out of mainstream banking due to poor credit or income volatility—right on a mobile phone.

“We’re thrilled to count PayPal among our esteemed investors, and look forward to leveraging their insights as we continue to build a multi-product company.”

In its announcement, the company said it is launching a series of additions and promotions within its management team along with the financing.

Besides the PayPal investment, the online lender also announced a series of additions and promotions within its management team.

Leading that list is the announcement that seasoned CFO Carrie Dolan has joined the company’s board as an adviser.

Vijesh Iyer, who previously spent 15 years at PayPal and Capital One, has been promoted to the role of COO.

Free Report
img

What does the future hold for BNPL market?

The global Buy Now Pay Later (BNPL) market is estimated at a massive $120 million in 2021 – representing just less than 3% of the global ecommerce market. Yet the user-base is massive, with leading provider, Klarna, alone reportedly having 87 million users in 2021. This market is only expected to grow, with established companies like Apple and Goldman Sachs moving into the BNPL sector in bids to capitalize on this trend. To help you make the most of this growing market, GlobalData’s Buy Now Pay Later in 2022 and Beyond report provides detailed insight into the BNPL sector. This report:
  • Discusses the disruptive potential of the BNPL sector on the payments industry
  • Identifies the leading companies that are driving sector growth and the benefits this new payments solution provides to both merchants and consumers
  • Analyzes the consumer’s risk of using BNPL loans and government attempts at introducing regulations to the sector
  • Uncovers the main risks that consumers expose themselves to when borrowing with BNPL
Download this free report to get to know where this developing market is headed, and how you can reshape your strategies.
by GlobalData
Enter your details here to receive your free Report.

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