PayPal has financed a direct online lender LendUp in a strategic deal, the terms of which have not been uncovered. LendUp provides loans and credit cards to American customers usually viewed as high risk by conventional banking institutions. LendUp, incorporated in 2012, creates loan opportunities for consumers in the emerging middle class facing denials on the part of major lenders.
Sasha Orloff, CEO of LendUp notes that they are focused on developing innovative financial solutions and products for those American consumers neglected by the mainstream banking sector in view of their low credit rating or income volatility, allowing them to access loans right from the comfort of their mobile devices.
He further adds that PayPal is a valued investor for LendUp and they expect its possible experience sharing in the future that may help the lender in its goal to establish a multi-product company.
Apart from the PayPal’s investment, LendUp has recently introduced new members to its board and team, including Carrie Dolan, former LendingClub CFO, to serve as an advisor, and Mandeep Walia, who previously worked for PayPal, Jordan Olivier, who previously worked for Lending Club, and Karry Bryan, a veteran of PwC and Schwab.
Carrie Dolan comments the job at LendUp expressing her excitement about the new assignment and notes that she is impressed with the LendUp’s efforts to bring credit access to underserved consumers while reducing the cost of lending and thus increasing the level of financial health for people in need.