|03/30/2021||PayPal now allows crypto to checkout|
|03/09/2021||PayPal to acquire Curv|
|02/03/2021||Earnings Week: PayPal|
|12/11/2020||PayPal backed Tink valued at $800M+|
|11/11/2020||Square, PayPal good & bad news for fintech|
Facebook Marketing, PayPal/Bitcoin, Usury Part 2, WFH - Ep 46
PayPal launched Checkout with Crypto, allowing users to use Bitcoin, Litecoin, Ethereum, or Bitcoin Cash to checkout at more than 29 million PayPal merchants.
“As the use of digital payments and digital currencies accelerates, the introduction of Checkout with Crypto continues our focus on driving mainstream adoption of cryptocurrencies,” CEO and President Dan Schulman said. “Enabling cryptocurrencies to make purchases at businesses around the world is the next chapter in driving the ubiquity and mass acceptance of digital currencies.”
The transactions will be settled in cash by PayPal automatically, and the firm said it does not plan on holding the coins and will likely sell the balance off. PayPal had previously offered to buy, sell and hold cryptocurrencies on their platform through a partnership with Paxos Trust Company.
PayPal said it added crypto purchasing to engage more customers with online merchants and make their purchasing platform more accessible.
How will the transactions be taxed? The terms and conditions state that PayPal will provide 1099 forms and report to the IRS, but “it is your responsibility to determine what taxes, if any, apply to transactions you make.”
A lot of Crypto news happened at once. Yesterday, Visa announced a USD Coin program, aiming to allow transactions to be settled through a stable coin backed by the USD.
PayPal held their earnings results for Q4, describing its strongest year in history by chief executive Dan Schulman.
In Q4 alone, PayPal added 16 million net new million active customers and 1.4 million new merchants and raised $6 billion in revenue. That brings the total to 377 million new users for the entire year.
After adding cryptocurrency to the platform, Schulman said that users that bought virtual assets log in twice as frequently as they did before.
“We have seen an exceptional response to pour crypto launch,” Schulmann said. “The crypto volume traded on our platform greatly exceeded our projections.”
The payments by-now-pay-later product added raised $750 million in the last quarter.
PayPal recently disclosed the dollar amount of receivables it had “purchased” between its working capital and business loan program for the first 3 combined quarters of 2020. The figure was $1.5B, down by more than half from over the same period last year. That would seem to suggest that the actual origination figure is probably $1.3B, which is still larger than some of its closest competitors. Numbers from rivals like Kabbage (recently acquired by Amex) and Amazon were not readily available.
For a larger comparison chart, click here.
2020 YEAR TO DATE:
|Company||Q1 2020||Q2||Q3||YTD TOTAL|
PayPal promoted Jeffrey Karbowski from Global Controller to Chief Accounting Officer. Karbowski is also the company’s vice-president. His new position takes effect on July 31, 2020.
Karbowski has been with the company since 2013.
Last week Politico reporter Ryan Hutchins noted on Twitter that Amazon has been alerting its website users who had installed Honey that the browser extension is no longer safe. The extension, which searches the web for sales coupons for items in your checkout basket and automatically applies them, was recently acquired by PayPal for $4 billion. The deal was agreed upon in November and completed last week. According to Hutchins, such warnings have been viewed by Amazon customers since just before Christmas.
Amazon is telling shoppers that the browser extension Honey — it gives you coupon codes and other ways to save — is malware.
Paypal bought Honey in November for $4 billion. That’s one extensive piece of Malware. pic.twitter.com/Di6I8RAX2X
— Ryan Hutchins (@ryanhutchins) December 20, 2019
Having been compatible for years without any security warnings from Amazon, critics have now raised the question over whether this was intentionally done to level competition between the two tech giants. Honey makes a profit by charging retailers a percentage of the sales made with the coupons that it finds, and with this now under PayPal’s umbrella, Amazon may no longer be comfortable taking that hit. Especially when its own Amazon Assistant offers a similar experience.
Speaking to The Verge, an Amazon spokesperson said that “Our goal is to warn customers about browser extensions that collect personal shopping data without their knowledge or consent.” A charge against Honey that did not seem to stick for Hutchins, who continued on Twitter with, “That’s how all browser extensions work – including Amazon’s own extension.”
During the summer, a security vulnerability was found in the browser extension only to be quickly patched. Following the coverage of this latest security warning, a Honey spokesperson stated to Wired that “We only use data in ways that directly benefit Honey members – helping people save money and time – and in ways they would expect … Our commitment is clearly spelled out in our privacy and security policy.”
PayPal has extended its popular working capital business loan program to Canada, according to company CEO Dan Schulman.
“This quarter, we began offering our PayPal business loan product to PayPal merchants in Canada, allowing them to access financing to build and sustain their businesses,” he said during the Q2 conference call. “This follows the expansion of our business financing solutions to Germany in Q4 2018 and in Mexico earlier this year in partnership with Mexican lending platform Konfio.”
deBanked ranked PayPal as the leading alternative small business finance company by originations in 2018. They are followed by OnDeck, Kabbage, Square, and Amazon.
It’s been said that Kabbage is on pace to surpass OnDeck in small business loan originations, but PayPal has already done it.
When PayPal announced a working capital program in the Fall of 2013, few were predicting that the initiative would propel them to the top of the small business lending charts. Just two years later, however, the payment processing giant had already loaned more than $1 billion to small businesses.
Today, that number is over $10 billion, according to a comment made by PayPal CEO Dan Schulman on the company’s Q1 earnings call.
That figure would suggest that they had loaned approximately $9 billion from Fall 2015 to the end of Q1 2019. OnDeck, by comparison, loaned $7.5 billion since Fall 2015 through Q4 2018. Several other data sources, including previous statements from PayPal that they had surpassed more than a billion dollars in quarterly small business funding in 2018 (already more than OnDeck), indicate that PayPal has become #1 on the deBanked small business funding leaderboard.
PayPal’s growth was helped in part by its acquisition of Swift Capital in 2017.
Two of the top four are payment processors:
|Company Name||2018 Originations||2017||2016||2015||2014|
|Funding Circle (USA only)||$500,000,000|
*Asterisks signify that the figure is the editor’s estimate
Greensky, a consumer lending company, wants investors to know how low its acquisition costs are relative to the competition. The chart above, which appeared in their year-end earnings report, showed how much lower their sales & marketing expense ratio is versus Square and PayPal.
deBanked examined three additional fintech lending companies and ranked them as follows:
|Company Name||2018 Sales & Marketing Ratio||2017|
*indicates an estimate
The closeness between Square and OnDeck is notable in that Square markets its payment services first and then offers loans (and other products) as an add-on, while OnDeck only offers loans. Despite that, sales & marketing as a percentage of revenue are still virtually the same for each of them. Square is outspending OnDeck on marketing by more than 10:1, however, and is on pace to surpass OnDeck’s annual loan volume.
Prosper, meanwhile, is doing just as poorly as its wacky ratio looks. The company is losing tens of millions of dollars a year with no end in sight.
Glass company needs 3rd position...
glass company approx. $30k monthly, no negatives, defaults, a little slow pay history - needs $20k has balance with lender (monthly pay $1200) and pa...
Lifetime Plan for Complete Internet Freedom...
the reliable and fastest vpn for complete internet freedom! experience the high-end security with uncompromised blazing fastest vpn connectivity. bu...
Fund a Paypal bank Account?...
paypal business as his primary bank account... anyone that will fund this kind of deal?...
paypal. we are very particular about our staff and pay more to get a higher quality person with higher moral and ethic code. we are known for deal security. what gives you the idea?". i responded with how i came to the conclusion which was my salesman was on the phone with a merchant that we had an offer from greenbox on for i believe was 21k and were in the process of closing. suddenly the merchant says hold on i'm getting another call, he comes back on the phone after 30 seconds and says who the hell is elliot from greenbox and why are they saying that "brokers are shopping out their file to them because they couldnt get the deal done". keep in mind, contracts had not gone out yet so he had no idea who greenbox was yet. to my surprise (or his admission of guilt) i never heard back from him or anyone else there. i left it alone and gave them the benefit of the doubt hoping it wouldn't happen again once i brought it to their attention. , , fast forward to today.. i get a call from "true capital" number 949-200-1848 asking for my merchant by name thinking he had the merchants number and then i ask which one of my (the merchants) companies he was calling about and he gave the companies correct name (keep in mind i submitted the file to them tuesday). i checked which lenders i submitted that file to which was a total of 2 companies (other lender was in tx) and greenbox was the culprit. true capital has no online presence what so ever which means they are a entity they have just to backdoor which i'm sure they have a few of and true capital is based in fl according to the rep that called. i called back from from a diff numbe...
paypal? , , zero security whatsoever....