PayPal Here Review

Mobile Payments Leader PayPal’s PayPal Credit Hits Major Milestone

February 6, 2019         By: Steven Anderson

PayPal is a powerhouse in the mobile payments market, but perhaps a lesser-known topic in the field is PayPal Credit. A new report issued by PayPal itself reveals that it may be lesser-known, but calling it lesser-used would be a mistake, as it’s recently cleared the $50 billion mark in total payment volume in the United States.

PayPal Credit has been running since 2008, the reports note, and functions as a “…flexible, open-end, revolving line of credit available as funding instrument in the PayPal wallet.” It’s been building ground for some time now, starting in large part with PayPal’s acquisition of Bill Me Later back in 2008, to reach the level’s it’s at today. In fact, a good part of that development came recently, as just in 2018, PayPal Credit saw total payment volume of almost $10 billion, over $2 billion of which came in November and December.

While this is good news for PayPal, the circumstances in which it’s being used aren’t, so much. Recent Federal Reserve reports suggest that 80 percent of full-time workers in the US report living paycheck-to-paycheck, while 40 percent aren’t able to cover a surprise bill for $400 without some kind of additional help.

It’s not just emergencies, though; PayPal notes that 58 percent of its users, in a survey, noted that they could make purchases they couldn’t ordinarily afford thanks to PayPal Credit. Meanwhile, 78 percent noted they could buy items needed immediately thanks to being able to pay over time. Whether it’s needs or wants, PayPal Credit is in and helping. Just to top it off, 56 percent of shoppers are more willing to shop at a retailer that offers PayPal Credit access.

While it’s distressing to hear about the numbers of people who are using credit to pay for necessities, or who can’t address surprise bills without credit, it’s important to note that there are more uses for credit than just addressing disaster. PayPal Credit is working to provide this service through all of these conditions, and as such, is opening up new opportunities for not only shoppers, but for businesses.

The proper use of credit is important, and PayPal Credit’s work should make credit more available and improve everyone’s lives involved.