PayPal has agreed to acquire Swift Financial, a provider of financial products to small businesses in the US. The deal is expected to complement PayPal Working Capital, a service launched in 2013 to provide small businesses a wider range of financial products; it's since lent more than $3 billion to fund over 115,000 companies.
Conducted in part to enhance PayPal's underwriting capabilities as the payments giant moves to become a bigger presence in online lending, the transaction is the latest example of the company's increasing versatility. Last month, PayPal pushed into the bill-pay market with the $283 million acquisition of TIO Networks.
Founded in 2006, Swift has provided funding to over 20,000 businesses, either via loan or an advance based on future sales and revenue. The company previously raised more than $115 million in venture financing from the likes of First Round Capital and Khosla Ventures, including a $30 million round last year that valued Swift at $151 million.
Shares of PayPal (NASDAQ: PYPL) dropped 3% Thursday. Check out more of our coverage of the online payments pioneer.