PayPal has become the largest non-bank lender globally with $54.27 billion assets as of February 2021.
Non-bank lenders have become a popular alternative to traditional banks when it comes to acquiring loans. Many small businesses around the world rely on alternative financing companies for their capital with traditional banks often having strict requirements such as a good credit score.
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According to a statement from the firm citing data presented by TradingPlatforms.com, as of May, 2020, PayPal was ranked 54th largest company based on market capitalisation, with $144.3bn fund.
PayPal said its total assets alone made up almost 60 per cent of the top 10 non-bank lenders’ total assets combined.
Monthly Active Users (MUA) for PayPal declined in the UK since February 2017 but was halted through a surge in PayPal’s popularity due to the COVID-19 pandemic and the lockdowns imposed on many developed markets.
In the UK, PayPal grew by about a million MUA since April 2020, from 2.05m MUA to 2.95m in January 2021.
As of Q4 of 2020, PayPal reported 377m active registered accounts globally, a 24 per cent increase from Q4 2019 (305m), it noted.
Non-banking institutions such as PayPal have become an integral part of the economy in most developed markets.
