LendUp. Think the opposite of American Express. Meaning, LendUp’s whole business model focuses on customers that other financial institutions don’t want. Well, its now going into credit cards and some other services with the help (and funding) of none other than PayPal. So, to circle back, Amex did wonderful things for the wealthy business travelers and LendUp (with PayPal’s help) looks to do the same for a “different” customer. Or, as they reference them, the “new middle class”. Nice. Good luck out there.
“LendUp has built business providing personal loans to customers that traditional financial institutions wouldn’t touch. As it looks to expand into credit cards and other services, the company has raised some strategic funding from PayPal and also has expanded its executive ranks.
LendUp wants to provide better financial products for the people who most need them, serving a demographic that most banks ignore, or worse, charge exorbitant fees to use their services. It’s a group the LendUp team likes to call “the emerging middle class,” and the company hopes to give them tools to help them get out of debt, save money and overall just become more financially successful.
Its message and methods resonated with PayPal, which, according to LendUp CEO Sasha Orloff, shares a lot of the same vision and also serves many of the same customers. Orloff says the funding came as a result of his relationship with PayPal CEO Dan Schulman, who he got to know while Schulman was at American Express.
“We liken this a lot to what Amex did for wealthy business traveler, [LendUp] could do for different customer,” Orloff said, adding that Schulman has a passion for financial inclusion and LendUp’s approach.
On the investment front, PayPal has become more active in the last year or so. The company made a strategic bet on retail investing app Acorns, as well as Pulsate and Viva Republica….”