INSIGHT · US
Payment platforms pivot merchant relationships into lending using transaction data
Block, PayPal, and other payments platforms are deepening merchant lending offerings by leveraging real-time transaction data to underwrite working capital faster. Q2 earnings show aggressive capital deployment into merchant credit products.
WHY IT MATTERS
Non-bank credit issuance by fintech platforms is fragmenting the SMB lending market away from traditional banks. BFSI risk officers must monitor off-books credit creation; regulatory arbitrage risk in merchant credit pools could trigger supervisory action within 24 months.
Source: PYMNTS · 2026-08-14