Paypal Invests in Lending Startup Tala
PayPal Inc Holdings Inc revealed last Monday that it has made a strategic investment in Tala, a fintech startup that offers micro loans to underserved consumers in emerging markets.
The California-based lending firm had been serving individuals in regions including Kenya, Tanzania, the Philippines, and Mexico via a smartphone app. The company, which has already lent more than $500 million to customers around the world says the funding will be used to further develop its product and extend its reach.
The firm uses device and behavioral data to underwrite customers and disburse loans of between $10 and $500 on mobile wallets or other methods. Around 85 percent of customers are able to receive a loan within minutes.