PayPal expands credit business

|By:, SA News Editor

PayPal (NASDAQ:EBAY) now plans on bringing its small-business and consumer lending programs outside the U.S.

PayPal Credit will soon be available in the U.K. and Germany, while PayPal Working Capital, its small-business credit arm, will expand to the U.K. and Australia.

The online payment company challenges traditional lending, and offers unique products which use alternative methods for approving loans, such as "sales history" with eBay or PayPal. The company also does not charge interest on the loans, but rather charges a flat upfront fee and deducts a percentage of each sale to repay the loan.