Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Capital on the Frontier Best Practices Geographies
Slack Conference Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe Log In

PayPal invests in online lender LendUp

A quarter of American households lack access to basic financial services, while 56% lack access to credit and lending.

LendUp, which was founded in 2012, designs affordable online credit and loan products for emerging middle-class Americans. Its flagship product, LendUp Ladder, was designed as a flat-fee alternative to payday loans where customers could borrow more by watching financial education videos and making payments on time.

The company says its automated lending process has helped save Americans $75 million in fees and interest.

California-based LendUp landed in hot water with federal and state consumer protection bureaus last year for its early lending practices and was ordered to pay out more than $6 million for fees and lending violations.

The company, which didn’t admit wrongdoing, said the regulatory actions dealt with issues going back to the early days of the company, before it had a full compliance department, The Wall Street Journal reported last year.

LendUp now has a compliance department. The company received early backing from GV — Google’s venture-capital arm — Andreessen Horowitz and other venture-capital firms.

The undisclosed investment from PayPal will be used to grow its customer base and to explore a partnership with PayPal.

You might also like...

Skip to toolbar