Member Exclusive

Lending Briefing: PayPal – one of the top 5 small business lenders in the US

  • PayPal says it's one of the top five small business lenders in the US, gaining ground in areas where traditional banks retreated.
  • Crypto lending is on the rise, with the industry's leading broker reporting over $50 billion in originations for Q4 2021.

Email a Friend

Lending Briefing: PayPal – one of the top 5 small business lenders in the US

PayPal was in the headlines quite a bit this past week, mostly thanks to news of its 4.5 million “illegitimately created” accounts, highlighting the banking/fintech industry’s fraud problem

John Rainey, PayPal’s CFO, gave this number to the public on the company’s fourth quarter earnings call, adding that the company “leaned into incentivized customer acquisition tactics to a much greater extent than we ever have in our history.” 

PayPal now wants to change its strategy from marketing campaigns offering a couple of bucks for a new account opening, which incentivized the fraud, and focus more on engagement and sustainable growth.

The issue of financial services fraud is systemic and not isolated to PayPal (stay tuned for an article dedicated to this later this week), but this is not what I want to focus on today. 

It’s another statement from a PayPal exec that caught my attention, one that generated less fuss in the media. Turns out that PayPal’s small business lending division is rising through the industry’s ranks, as the fintech now self proclaims to be one of the nation’s top five small business lenders, with the vast majority of business coming from areas deserted by banks.


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “Lending Briefing: PayPal – one of the top 5 small business lenders in the US”

Member Exclusive, Modern Marketing

Marketing Briefing: The case of product-first and the SEO burst

  • In this week’s briefing, we cover what’s new in marketing for banks – big, small, and digital alike.
  • Plus, we’re digging into SEO in the fintech world through some interesting numbers.
Rivka Abramson | May 23, 2022
Finance Everywhere, Member Exclusive

Embedded Briefing: Affirm reports strong quarter; focuses on achieving profitability

  • BNPL leader Affirm reported $354.8 million in revenue, exceeding analyst expectation of $345 million, and showing a 54% increase YoY.
  • Analysts are wary of Affirm's trajectory, saying that while the firm may look like an exciting tech company, it is increasingly operating as a traditional credit provider.
Subboh Jaffery | May 20, 2022
Data Snacks, Member Exclusive

Data snack: US banks’ growth rates are down in Q1 2022

  • Growth is stalling across the US banking sector, with both deposits and loans up marginally from the fourth quarter of 2021.
  • This could be an indicator of current macroeconomic conditions, as the Federal Reserve tightens up market conditions so that the economy will moderate.
Iulia Ciutina | May 18, 2022
Member Exclusive, Payments

Payments Briefing: ‘We penetrated the blue ocean opportunity of the Spanish-speaking market’ – NovoPayment’s Anabel Perez

  • This week, we take a look at Miami-based BaaS provider, NovoPayment.
  • We also discuss Bumped, a firm that rewards customers with equity in the brands they shop from.
Ismail Umar | May 12, 2022
Member Exclusive

Lending Briefing: How fintechs are digitizing the mortgage process

  • Shifting consumer preferences are incentivizing mortgage banks to digitize other outdated, paper-based or manual parts of the business. But most of the innovation is happening outside the legacy system with fintechs taking the lead.
  • Given the current macroeconomic environment, uncertainty and dwindling margins in the mortgage sector, digital processes can help weather the storm by reducing costs.
Iulia Ciutina | May 11, 2022
More Articles