PayPal Wants To Boost Business Loans By Teaming Up With Australian Banks

PayPal Australia CEO Jeff Clementz. Image: Supplied.

PayPal Australia’s CEO Jeff Clementz has had a number of talks with Australian banks to see how the organisations can work together.

The Australian Financial Review reported Clementz has had discussions with banks in Australia and the company’s US division is also “actively exploring” the idea of offering small business loans.

“There is a great opportunity for a PayPal-plus-bank partnership. PayPal could provide the online experience and the banks could provide the capital through their balance sheets,” Clementz said.

A partnership could be formed around small business loans between $6,000 and $20,000 and would leverage PayPal’s data and the banks’ capital.

There has been discussion that payments companies and financial services startups are starting to close in on some of the banks, taking small pieces of market share. However, Clementz said this idea of a partnership shows Paypal isn’t a long-term threat to banks.

“PayPal does not have the balance sheet to make a massive dent in small business loans,” he said.

There’s more here.