“We believe this is an area for innovation and that there are a lot of unmet demands for better service for online businesses,” said the managing director of eBay UK. Murray lambell said FT. “We think eBay is well positioned to deal with this.”
The online market is in partnership with you lend to offer the 300,000 sellers of its platform in the United Kingdom access to capital. The CEBS initiative will offer loans ranging from Â£ 500 to Â£ 1million. The move positions eBay as a competitor to its former subsidiary PayPal, as well as banks and other financial institutions offering business loans.
Lambell added that eBay is also exploring more lending options for large companies and is considering working with specialists rather than creating an in-house credit department, according to FT.
âWe can partner with companies that deliver solutions, and what we can give them is unparalleled access to data and information that helps them get the best loans,â said Lambell.
Bankers at legacy institutions will be watching the CEBS program as they continue to measure the impact tech companies could have on their balance sheets. EBay’s $ 41 billion market capitalization is around 50% higher than that of the UK’s largest small business lender NatWest, according to the newspaper.
Amazon has provided loans to small businesses selling in its market for about 10 years, but the popularity of the program has waned over the years,
In June 2020 PYMNTS maintenance, Keala Gaines, eBay’s head of global payments services, said the platform’s strategy for payments has evolved over the years as the business has grown. eBay is available in 100 countries and has 27 international locations.