Posted 05/13/2015 at 11:31 AM
Posted 2 years ago
More than ever, small businesses are getting great support in terms of services assisting them with mobile payments. Their needs means greater demand, which means more profit to be had for two of the leading mobile payment services, PayPal and Square – and a more competitive air with an eye on the future.
In a fairly recent blog post, PayPal claimed that through their Working Capital program, they were able to loan small businesses an estimated $500 million in the last year and a half. These loans have proven to be so popular, with features that include online application and receipt of funds in a matter of minutes that PayPal reports a rate of returning borrowers at 90%. Square, the mobile company created by noted co-founder of Twitter Jack Dorsey, has also boasted of great successes thanks to their Square Capital brand. According to their reports, they’ve loaned out $25 million in the past month and $100 million within the past year to small businesses. This news has encouraged Square Capital to obtain a round of funding from Victory Park Capital, their original investor as well as a new investor, Colchis Capital for an undisclosed amount.
There is another dimension to this mobile payment boom – the rise of Apple Pay. While it is uncertain that Apple would extend their empire to include funding for small businesses in this regard, both PayPal and Square are making sure that if Apple makes that move, that they will have already further entrenched themselves as go-to options for small businesses looking for easy access to capital to enhance themselves.