PayPal’s Lending Increases

PayPal was mum about its working capital loan products in the latest quarterly earnings report, but clues lie in an important line item, Loans and interest receivable. The figure has historically been closely correlated with originations. PayPal reported $3.7B in those receivables at the end of Q3, up from $3.2B in Q2 and up from $2.77B at the end of Q4 2020.

The number was close to $4B at the end of 2019 so the figures represent a return to previous levels.

In the earnings call, PayPal CFO John Rainey said “growth in our short-term installment pay portfolio was the primary driver of this increase.” Rainey appeared to be referring to its Buy-Now-Pay-Later product.

Separately, PayPal announced that Venmo users should be able to pay for purchases on Amazon beginning next year.