You Think PayPal’s Acquisition Of Swift Financials Was Out Of The Blue? Think Again!

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21.Sep, 201700

You Think PayPal’s Acquisition Of Swift Financials Was Out Of The Blue? Think Again!

PayPal, when it was launched by Confinity, started with the very catchy slogan “Beam Money On the Internet”. At the time when you literally had to handover your credit details to a stranger at the other end of the phone, with high chances of getting conned. PayPal was both a convenience and a life saver. Since its inception, Paypal has come a long way, from being just a means of “ Sending and Receiving Money Online” to pretty much changing the face of online financial transactions.

WHAT SWIFT FINANCIAL DOES?

Swift Financial has been a leading provider of working capital solutions to small businesses in the U.S. Since 2006, when it was established it has provided funding to thousands of companies through a combination of data, technology and outstanding customer service. They have quite a foothold as well as expertise in this field.

THE MOTIVE OF AQUISITION?

As regular consumers, not everyone is aware of PayPal Working Capital that has been actively in function since 2014. It has provided small businesses access to more than $3 billion to more than 115,000 small businesses. Earlier too Paypal had been involved in providing credit lines to individual customers, which work just as regular Credit Cards after acquiring Bill Me Later. This was rebranded as Paypal Credit. This provided services for Comenity Capital Bank, which has been the lender of PayPal credit accounts.

Acquiring Swift Financial Services is a similar move, in an attempt to facilitate and strengthen the PayPal’s foothold in the Online Financial Spectrum. This acquisition serves several advantages for PayPal. Apart from reducing competition, from Swift Financial, Paypal has also gets to operate in synergy and take advantage of Swift Financial’s higher market share and penetration. Also, seeing as credit line for small business owners is not yet Paypal’s forte, it is an additional advantage that PayPal shall be gaining.

PAYPAL’S FUTURE STRATEGY AND PLANS

After entering the mobile economy and giving customers the option to use PayPal as their basic wallet PayPal has already strengthened their foothold in the individual market. According Daniel Schulman’s vision for the company, PayPal is to be the operating system rather than just a wallet or a part of the whole system.

In order to succeed at this plan, a full range of services for both the individuals as well as companies is planned that allows them access to any type of funding whether that be cash, advance, credit or a payment from another person.

 The Vision

We believe that this is the time to re-imagine money, to democratize financial services, so that managing and moving money is a right for all citizens, not just the affluent.

PayPal’s strategy and this acquisition is in perfectly alignment with their vision. With the belief that small business are the future of global economy and the added disadvantage that new start-ups and not supported well nor considered credit-worthy by traditional banks and face severe problems in getting loans from bank. Online loans came as a market demand from various merchants that PayPal was already working and also found to be lucrative business opportunity which was taken well.

With an extremely fast application process, low fees and easy repayments, it is gaining popularity and already scoring good testimonials from the users, with the PayPal affiliated merchants joining the service. The acquisition is a well thought-of and well-engineered step towards bringing in the “new money concept” as well as becoming the backbone of online finances for PayPal.

ABOUT AUTHOR

Dana

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