PayPal Surpasses $30B in Global Small Business Lending

Rhea-AI Summary

PayPal (NASDAQ: PYPL) has achieved a significant milestone by surpassing $30 billion in global loan originations, providing over 1.4 million loans and cash advances to more than 420,000 business accounts globally since 2013. The company offers two main financing solutions: PayPal Business Loan and PayPal Working Capital, available across multiple countries.

These lending solutions have demonstrated strong performance metrics, with Net Promoter Scores of 76 and 85 respectively, and over 90% customer renewal rates. Businesses using PayPal Working Capital see a 36% increase in total PayPal payment volume, while PayPal Business Loan users experience a 16% increase.

The initiative addresses a critical market need, as more than three-quarters of small businesses currently express concerns about capital access. Small businesses, which account for over 43% of U.S. GDP and nearly 40% of private sector payroll, benefit from streamlined online applications without extensive paperwork or credit checks.

Positive

• Reached $30B milestone in global loan originations
• High customer satisfaction with NPS scores of 76-85
• 90%+ customer loan renewal rate
• 36% increase in payment volume for Working Capital users
• 16% increase in payment volume for Business Loan users
• Extensive market reach with 420,000+ business accounts served

Negative

• Service not available in all U.S. states
• Working Capital to businesses using PayPal for payments

Insights

Financial Services Analyst

PayPal's achievement of surpassing $30 billion in small business lending represents a significant expansion of its financial services ecosystem beyond core payment processing. The scale is impressive—over 1.4 million loans to 420,000+ business accounts globally since 2013—especially considering the traditionally underserved small business lending market.

The most compelling aspect isn't just the lending volume but the ecosystem benefits it creates. Businesses increase their PayPal payment volume by 36% after adopting PayPal Working Capital and 16% after taking a PayPal Business Loan. This creates a virtuous cycle where lending drives increased payment processing revenue, substantially enhancing merchant lifetime value.

The Net Promoter Scores of 76 and 85 for these lending products are exceptionally strong for financial services, where scores above 50 are considered excellent. Even more telling is the 90%+ repeat usage rate, indicating these aren't just occasional financing tools but recurring solutions that merchants incorporate into their business operations.

This achievement positions PayPal as a more integral financial partner to small businesses rather than just a payment processor—a critical differentiation in an increasingly competitive payment landscape. By leveraging their existing merchant relationships and transaction data for streamlined underwriting, PayPal has created a lending model that traditional banks struggle to replicate.

PayPal provides access to over 1.4 million loans and cash advances to more than 420,000 business accounts globally through its merchant lending solutions

SAN JOSE, Calif., March 26, 2025 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) today announced it has passed $30 billion in global loan originations* and has extended more than 1.4 million loans and cash advances to more than 420,000 business accounts globally since 2013, filling a critical gap for small businesses looking for capital to maintain a healthy cashflow and grow.

Small businesses play a critical role in the global economy and within local communities. They are job creators, community builders, drivers of innovation and opportunity. Small businesses account for more than 43% of the U.S. GDP and nearly 40% of private sector payroll. Despite these contributions, access to capital continues to be a critical challenge for SMBs. Currently, more than three quarters of small businesses are concerned about access to capital as they try to maintain or grow their businesses.

To help fuel small business growth and prosperity, PayPal offers financing solutions including PayPal Business Loan in the U.S. and PayPal Working Capital in the US, UK, Germany, France, Australia and the Netherlands. PayPal Business Loans, launched in 2017, are term loans with fixed repayments and not exclusively for businesses that use PayPal to process payments, while PayPal Working Capital, launched in 2013, is repaid as a percentage of a business's PayPal sales. Small businesses leverage PayPal Working Capital or PayPal Business Loan to help stock up on inventory, hire new employees, make payroll, invest in their businesses and scale.

"Access to capital is consistently one of the top challenges small businesses face as they look to maintain and scale their businesses," shared Michelle Gill, EVP and GM of SMB and Financial Services at PayPal. "Traditional business loans are not only difficult to secure for small businesses, but the application process can be challenging and prohibitively time consuming. PayPal's financing solutions have a streamlined online application process with no lengthy paperwork or extensive credit checks, and approved PayPal loans are funded within minutes. We launched PayPal Working Capital and PayPal Business Loan to serve this important need, and to provide a quick and responsible way to inject much needed capital to help fuel small business growth."

Small businesses have seen tremendous value in PayPal Working Capital and PayPal Business Loan, as both offerings continue to receive remarkable feedback from customers. Additionally, both offerings have achieved Net Promoter Scores of 76 and 85 respectively and our customers renew loans or access our offerings on a repeat basis more than 90% of the time. Businesses also experience an increase in their total PayPal payment volume by 36% after adopting PayPal Working Capital and 16% after taking a PayPal Business Loan.

"One of the key challenges I've faced as an entrepreneur who is a woman of color is securing access to capital," shared D'Shawn Russell, Founder and CEO of Southern Elegance Candle Co., a specialty candle business based in Raeford, North Carolina. "Too often, small business owners get turned down from traditional banks, so being able to get access to funding through PayPal Working Capital has really been an integral part of growing my business. When I took out my first PayPal Working Capital loan, I was making $100,000 in sales. I've since benefited from several working capital loans, which have helped my business grow into a multi-million-dollar business."

*The lender for PayPal Business Loan and PayPal Working Capital in the United States is WebBank. PayPal Working Capital and PayPal Business Loan are currently unavailable to businesses located in certain states.

About PayPal
PayPal has been revolutionizing commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com, https://about.pypl.com/ and https://investor.pypl.com/. 

Contact: Media Relations, mediarelations@paypal.com 

View original content to download multimedia:https://www.prnewswire.com/news-releases/paypal-surpasses-30b-in-global-small-business-lending-302412002.html

SOURCE PayPal Holdings, Inc.

FAQ

How much has PayPal (PYPL) lent to small businesses globally?

PayPal has surpassed $30 billion in global loan originations, providing over 1.4 million loans and cash advances to more than 420,000 business accounts since 2013.

What are the two main lending products offered by PayPal (PYPL)?

PayPal offers PayPal Business Loan (launched 2017) with fixed repayments, and PayPal Working Capital (launched 2013) which is repaid as a percentage of PayPal sales.

What is the customer satisfaction rate for PayPal's (PYPL) lending products?

PayPal's lending products have Net Promoter Scores of 76 and 85, with over 90% of customers renewing loans or accessing offerings repeatedly.

How do PayPal (PYPL) loans impact business payment volumes?

Businesses experience a 36% increase in PayPal payment volume after adopting PayPal Working Capital and a 16% increase after taking a PayPal Business Loan.

In which countries are PayPal (PYPL) lending solutions available?

PayPal Working Capital is available in the US, UK, Germany, France, Australia, and the Netherlands, while PayPal Business Loan is available in the US.