Handelsblatt Exclusive PayPal Plans to Offer Small Business Loans in Germany

PayPal Chief Executive Dan Schulman said he plans to roll out Paypal Working Capital in multiple countries, including Europe's largest economy.
PayPal CEO Dan Schulman, picture source: Reuters

Dan Schulman, the chief executive of PayPal, told Handelsblatt in an interview that he plans to roll out small business lending in Germany.

“Our intent is to roll that out to multiple countries, including Germany,” Mr. Schulman said. “In Europe, we have already started in the U.K.”

PayPal began offering small business loans in the United States four years ago and has expanded globally. By last summer, PayPal Working Capital had lent $2 billion (€2.1 billion) to 90,000 companies.

Unlike traditional banks, PayPal doesn’t charge interest on its loans. Companies pay a one-time fee and service their loans based on revenues from online sales.

Paypal’s market capitalization is twice that of Deutsche Bank, Germany’s largest financial institution. When asked whether or not PayPal was interested in buying a large bank, Mr. Schulman indicated that remaining nimble was more important to PayPal’s business model.

“Companies have long tried to buy and own everything,” Mr. Schulman said. “But today the most nimble and successful firms think about ways of collaborating and taking the best of each."

Mr. Schulman did say that PayPal is in discussions with financial institutions around the world about potential partnerships, though he declined to say whether Deutsche Bank was among them. The executive did say that Deutsche offers “great assets.”

“Deutsche Bank for example has some great assets that could be plugged into our platform, and vice versa,” he said.

Read the full interview in Tuesday's Handelsblatt Global.