Tag Archives: PayPal

PayPal to Give Small Businesses Access to Working Capital in Minutes

Online payments company PayPal launched a lending platform today whereby small-business owners can apply for access to capital and be approved in minutes.

Called PayPal Working Capital, the funding tool allows business owners to pay back their loans based on a fixed percentage of sales. For example, if you opt to pay back your loan at a 10 percent rate, and you bring in $500 in total sales one day, $50 goes toward paying off your loan. If you bring in $5,000 in total sales the next day, then $500 goes toward repaying the loan. If you make zero sales on a particular day, you don’t make any payments on your loan.

The other unique aspect of the PayPal capital access product is that borrowers pay a single fixed fee for the loan. The faster a business owner opts to repay the loan, the smaller the fee. Many loan products have multiple, hidden fees associated with late payments, initiation, processing and even early termination fees. The PayPal loan product prides itself on being exceptionally transparent about the entire cost of the loan up front. Continue reading

Advertisements

With Paylib, French Banks Work Together To Compete With PayPal

CreditCards

 

Three major French banks have worked together on a new payment system for the web called Paylib. With a Paylib account, users will be able to pay on the web using a simple login and password instead of having to enter all their credit card information. The user experience should be similar to paying with your PayPal account, and it will make even more sense on mobile. Multiple ecommerce websites are already on board.

BNP Paribas, Société Générale and La Banque Postale are the three initial banks, but it’s an open standard. They hope that more French banks will join them. In total, 23 million users can already pay using Paylib, compared to 7 million PayPal users in France.

When you first use Paylib, you have to select the credit card to link with your Paylib account. In addition to the login and password, users will have to enter a second code from the companion app on their smartphones. It’s very reminiscent of Google’s two-step verification process.

Paylib has worked with Voyages-sncf.com, Ventesprivees.com, PriceMinister and Leroy Merlin for the service’s launch. As those websites are very popular ecommerce platforms, the partnerships will be a major asset of the initial growth strategy.

While anybody can start processing payments through Paylib, the solution will remain restricted to the French market as only French banks are part of the initiative. One of the incentives for merchants is that the processing fee is lower than PayPal’s processing fee (usually around 3 percent in France).

Working together is the only way that French banks could come up with a compelling alternative to PayPal and soon-to-be-launched Stripe. Yet, French authorities are following Paylib very closely. The service could create antitrust issues.

If Paylib can partner with more banks, it could become a competitive payment processor in France, giving a lot of power to the major French banks.
With Paylib, French Banks Work Together To Compete With PayPal. 2013, September 17. By Roman Dillet. Retrieved from http://techcrunch.com/2013/09/17/with-paylib-french-banks-work-together-to-compete-with-paypal/.

Banks intent on becoming pioneers of mobile payment systems

Some day, Canadians will have the option to wave their smartphones over a cash register and be on their merry way, instead of swiping and punching into a credit or debit card terminal or fumbling for wayward coins and cash.

When that happens, it won’t likely be the pioneers of Internet payments such as PayPal providing consumers with mobile payment options, analysts say, but rather a group of old-timers — the country’s biggest banks and telecom companies.

The struggle to corner the so-called “digital wallet” market is pitting the Big Six against foreign-run alternatives like PayPal and Square in their quest to offer the best technology to transact contactless payments using smartphones and tablets.

In July, Royal Bank of Canada became the second bank in the last 12 months to launch a mobile payment solution — an application that enables clients to pay for goods and services by tapping their smartphone against a terminal.

The launch by Canada’s largest bank followed Canadian Imperial Bank of Commerce (CIBC) and Rogers Communications Inc.’s joint venture to replace credit cards with smartphones last November. RBC’s digital wallet prototype will debut on devices from Rogers’ rival BCE Inc. Toronto-Dominion Bank is also testing different mobile payment options, while Scotiabank is developing its own version called My Mobile Wallet. Continue reading