PayPal (EBAY) is expanding into merchant financing: the online payments leader has already...

|By:, SA News Editor

PayPal (EBAY) is expanding into merchant financing: the online payments leader has already conducted U.K. tests for a service offering up to £25K in financing to eBay sellers, and says it plans U.S. tests later this year. PayPal's efforts comes as Amazon launches a lending service for 3rd-party merchants, and as startup Kabbage raises $75M in debt to advance to eBay/Amazon merchants (among others). eBay already offers consumer e-commerce financing through its Bill Me Later unit. (PayPal growth forecasts)