25 Jun

Why eBay’s Wins Are Good for Square


eBay helps Square access business loan customers

Last year, Square (SQ) secured a contract to lend money to eBay sellers, thereby expanding the market opportunity for its loans business. Given this arrangement, progress at eBay that can help bring more sellers to the platform bodes well for Square because the company will have a larger pool of potential business borrowers.

Why eBay’s Wins Are Good for Square

eBay (EBAY) has been recording some important wins recently. The online marketplace operator added almost 10 million new active shoppers on its marketplace during the one-year period that ended in March 2019 to finish the first quarter with 180 million active shoppers on its platform. With more shoppers, eBay stands a better chance of attracting more sellers to its platforms, which would, in turn, expand the lending opportunity for Square.

Square extended over $500 million in loans in the first quarter

Besides its having added millions of active shoppers in the span of one year, eBay also remains the top alternative marketplace for Amazon (AMZN) sellers. eBay hosts 56% of Amazon sellers, according to data from Feedvisor. It’s placed ahead of Walmart, which hosts 49% of Amazon sellers, and Shopify (SHOP), which hosts 19% of Amazon sellers. Sears (SHLDQ) hosts 8.0% of Amazon sellers.

As the top alternative marketplace for Amazon sellers, eBay provides an important platform for Square to try to take loan customers from Amazon, which also makes small loans to sellers.

Square dished out $508 million in loans to 70,000 small businesses in the first quarter.

Latest articles

US crude oil production has more than doubled since 2009 and grew by 1.1% over the last year. Currently, there are 133 operable refineries in the US.

The cannabis industry is fighting against the ongoing US-China trade war and recessionary worries, which have hurt valuations across the global market.

Higher revenues, increased ticket prices, and lower fuel costs are likely to drive American Airlines' Q3 earnings higher despite its Boeing MAX woes.

HEXO plans to report its Q4 earnings before the market opens on October 24. October has been tough for Hexo, with its stock falling 31.2% as of October 18.

Today, Advanced Micro Devices (AMD) rose 4% to over $32, making it one of the top Nasdaq gainers. Morgan Stanley raised its price target for AMD stock.

Early in 2019, President Donald Trump warned that China could overtake the US as a global power. He vowed that this would not happen under his leadership.