uploads///

PayPal Invests in Raisin—More Could Follow

By

Dec. 4 2020, Updated 10:43 a.m. ET

Raisin operates savings deposit marketplace

US-based (SPY) digital payment processor PayPal (PYPL) recently made an investment of an undisclosed size in Raisin, TechCrunch reported. In addition to PayPal, other investors in Raisin include Index Ventures, Ribbit Capital, and Thrive Capital. The startup had raised 60 million euros before the latest funding round in which PayPal participated.

Raisin is a Europe-based (EFA) fintech startup that operates a savings deposit marketplace. Its platform lets people shop around for banks with better interest rates on deposits.

While consumers gain by being able to conveniently identify banks that suit their savings plans, banks that integrate with Raisin also receive increased exposure to potential customers across Europe.

Article continues below advertisement

Bringing Raisin services to PayPal customers

The investment in Raisin could open up an avenue for PayPal to bring Raisin services to its users. Bringing Raisin to its platform would fit PayPal’s goal of offering a broader range of financial services as it differentiates itself in an increasingly competitive industry.

Square (SQ), Apple (AAPL), and Amazon (AMZN) are competing against PayPal for control of the digital payments and alternative lending markets.

PayPal brought automatic investing to customers

As part of its effort to offer comprehensive financial services, PayPal recently integrated its platform with Acorns Grow, a mobile app that automatically saves and invests on behalf of users. The integration came a little over a year after PayPal led a $30.0 million financing round for Acorns Grow.

PayPal finished 3Q17 with 218 million active customer accounts globally, most of which are consumer accounts that could use Raisin’s savings deposit marketplace.

Advertisement

Latest PayPal Holdings, Inc. News and Updates

    Market Realist Logo

    © Copyright 2022 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.