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June 30, 2017

Paypal makes strategic investment in online lender Lendup

PayPal has made a strategic investment in LendUp, a San Francisco-based fintech startup that offers loans to those who are considered too risky by banks. Terms of the deal were not revealed.

Founded in 2012 by CEO Sasha Orloff and CTO at Zynga, LendUp offers several types of credit products, including loans and credit cards. It also provides financial education, access to credit reporting and gamification for responsible lending behavior.

Commenting on the development, Orloff said: “We’re building our own technology to create new financial products and experiences for the 56% of Americans shut out of mainstream banking due to poor credit or income volatility—right on a mobile phone.

“We’re thrilled to count PayPal among our esteemed investors, and look forward to leveraging their insights as we continue to build a multi-product company.”

In its announcement, the company said it is launching a series of additions and promotions within its management team along with the financing.

Besides the PayPal investment, the online lender also announced a series of additions and promotions within its management team.

Leading that list is the announcement that seasoned CFO Carrie Dolan has joined the company’s board as an adviser.

Vijesh Iyer, who previously spent 15 years at PayPal and Capital One, has been promoted to the role of COO.

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