news.cuna.org/articles/106644-news-of-the-competition

News of the Competition

July 6, 2015

WASHINGTON (7/6/15)--Payments service providers such as Square, PayPal and Amazon have edged into the small-business credit market in recent years, and while they haven’t made a huge dent, they have experienced solid growth in recent months (American Banker July 1). Part of the success can be attributed to the fact that these payments service providers have an advantage when it comes to underwriting loans. They have access to volumes of sales data made by their customers, who must have a previous relationship with them to receive any type of financing. “Traditional banks may not see, and most of them don’t see, spending on a monthly basis, daily and within-a-day basis, “ Ed Jay, executive vice president of merchant services at Amex, told American Banker. “We feel like we can predict in a better way who is going to pay back their loans” …