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Payments-tech companies are moving into lending

A handful of payments companies including Square and PayPal are moving beyond their core market in payments to take advantage of an opportunity to help small businesses grow.

For payments companies, lending creates opportunities. They are now offering loans and advances to their small-business clients and charging a fixed fee for the capital advance. It's a way to develop a new revenue stream, but also to help their merchants grow (which in turn, means more money from credit card transaction fees!)

Read more: http://uk.businessinsider.com/payments-tech-companies-move-into-lending-2015-2?r=US#ixzz3ZoeHjCjJ