The acquisition will allow PayPal to offer loans to the larger businesses that process payments through its platform and better provide credit to firms that are not yet users of its services, the company said on Thursday.
San Jose, California-based PayPal did not disclose terms of the deal, which is subject to regulatory approval.
Founded in 2006, Delaware-based Swift Financial extends credit to businesses through loans and advances.
PayPal has been offering short-term loans to its smaller merchants through a division called PayPal Working Capital since 2013. It uses data on the payments it processes for its merchants to assess their credit-worthiness.
The company has lent more than $3 billion (roughly Rs. 19,260 crores) to 115,000 small businesses in loans of up to $125,000 since inception.
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