In a surprise move it seems that PayPal have branched out into the lending market. In a recent article in the Irish Times the E-Wallet giant confirmed that they had expanded from online E-Wallet services to money lending.
Although their system is still a lot more modest than some of the other companies like the ‘Lending Club’ they’re still managing to carve a name out for themselves in the market.
But what has exactly caused this massive move to loaning money to their customers?
Well according to PayPal in the last few years the non-bank based lending market has grown at an almost meteoric rate. As big businesses and finance companies have retreated from the industry smaller companies have seen the opportunity and flooded it with their own microloan services.
PayPal already have two different types of loan services.
The first is for merchants that use it to sell and buy stock, merchants normally have to pay a fixed fee for this service and it comes with a maximum cash cap of £60,000 on any loans. The other version is for the consumers, with a smaller cap on spending and the option to have an official credit card this system has proven to be incredibly popular with the sites users.
The card system also works in PayPal’s benefit because with normal transactions this E-Wallet system has to pay a cash handling fee for consumers, whilst with their own brand of card they don’t have any extra charges to cover.
But it’s not just a credit card and merchant loans that PayPal have branched out into because they’ve also partnered up with Apple to create a payment package system.
According to an article on CNET this unique feature lets you create a payment plan on Apple products with PayPal.
So for example, if you see an iPad or iPhone in the Apple Store that you really wanted but didn’t have the immediate cash to cover it then you could set up a payment plan with PayPal. This unique system works in exactly the same way you would pay off items on your credit card in monthly installments.
Since PayPal has already been one of Apples most popular options for making Itunes and App Store purchases it seemed only logical for them to form up with the E-Wallet giant to create this brilliant system. Plus the interest rates on loan payments from PayPal are incredibly low with a £250 micro-loan from the company taking roughly 18 months to fully pay off.
But not only does this great feature make buying Apple products easier it also means you can access to everything you need to play bingo through PayPal only.
For example, you create a PayPal account, you then request a loan from them or you use their special credit card to buy an item and set up a payment plan. Then once you’ve got your smart device you can boot up your favourite bingo site and fund your account with PayPal again.
All of this can be done easily, quickly and without having you dig out your ordinary debit or credit card to get cash.
So if you’re interested in getting some cash without going through the rigmarole of contacting your bank or a loan site that might charge extortionate amounts of interest (1,000% in some cases). Then why not try using PayPal’s new system.
It’s already seen a ton of success as a loan system and it’s likely that we’ll see them using their new unique loan programme for a long time.