This May PayPal, with 169 million active customer accounts, had loaned out $500 million to small businesses. A year ago the company was lending at a rate of about $1 million a day, increasing to a rate of $2 million a day since the May announcement, according to Esch. At that rate the company would now have loaned a total of more than $620 million. From the original maximum loan rate of $20,000 at the time of launch PayPal’s current maximum loan increased to $85,000 earlier this year, with a minimum loan of $1,000. PayPal plans to continue that growth.
A BI Intelligence report earlier this month showed that traditional loans to businesses with $1 million or less in revenue in 2013 were down 54 percent from pre-Great Recession levels, opening the door to payment companies like PayPal and its competitor Square to enter the lending market. Since PayPal also processes the transactions of the companies it loans to that risk is mitigated by a payment structure that takes a percentage off each transaction instead of a monthly payment. The average merchant generates between $50,000 per year and $2 million per year in revenue.
Though the company isn’t disclosing the total amount of employees working in its PayPal Working Capital division, Esch says that the number of people he manages grows monthly at the company’s San Jose corporate headquarters, in Richmond, Virginia, Maryland, and as of the end of last year, in the United Kingdom and Australia.
As part of the separation from eBay, PayPal and its subsidiaries Braintree and Venmo are moving to new offices at their New York City location.
PayPal’s separation from eBay (Nasdaq: EBAY) was completed on Friday, July 17. Under the terms of the separation, stockholders who held eBay common stock at the close of business on July 8, 2015 received a distribution of one PayPal common share for every share of eBay common stock held. PayPal’s stock is currently trading at about $41 per share, up 6.25 percent since opening with a market cap of about $46 billion, more than eBay, which is currently valued at $34.6 billion.