PayPal launches credit line for Brazilian sellers

The company expects that in three years, almost a third of PayPal's customer base will contract at least one loan

PayPal headquarters in the North San Jose innovation district in Silicon Valley. — PayPal headquarters in the North San Jose innovation district in Silicon Valley, California, USA. Photo: Michael Vi / Shutterstock

27.May.2020 13:23 BRT
UPDATED 13:33 BRT

The line, which has been tested since December last year, will allow a loan of BRL 5,000 to BRL 2.5 million, with interest starting at 1.5% per month, and a payment term of up to 36 months;
To be eligible for the loan, the seller must have at least six relationships with PayPal.

PayPal finally debuted its credit line for Brazilian sellers, a desire that has been fueled since the service’s debut in Mexico last year. The product, according to Valor Econômico newspaper, was developed in partnership with the independent manager Captalys and will operate in a slightly different way: debts will be discounted daily, according to the sales flow of entrepreneurs.

The movement is natural and follows what many fintech and companies in the market have been doing, starting as a digital portfolio and adding new financial services, as a way to increase the volume of transactions and monetize the growing customer base.

The line, which has been tested since December last year, will allow a loan of BRL 5,000 to BRL 2.5 million, with interest starting at 1.5% per month, and a payment term of up to 36 months. To be eligible for the loan, the seller must have at least six relationships with PayPal. According to the company, 350,000 sellers in total will have access to the credit line in Brazil.

“The product gains strength in a pandemic period. The smaller the company, the greater the risk of not surviving the moment, ”said Thiago Chueiri, director of business development at PayPal in Brazil, to Valor.

The company expects that in three years, almost a third of PayPal’s customer base will contract at least one loan. Since last year, the company has been offering its credit services in the United States, Mexico, and Germany.