PayPal moves into small biz lending

I must say I was expecting this news for some time now. However, as they say, better late than never.

It is a fact that lending is the natural extension of payment services, especially when it comes to small-medium enterprises (SMSs). Well done, PayPal.

I think this will be a threat- in the short-medium term- more to credit card companies than to banks. I have seen some credit card players making steps into supply chain finance (after all that's what we are talking bout here)- e.g., Mastercard, VISA, Amex- with alternate fortunes.

Banks will follow suit down the drain if they don't find a way to properly assess and price the risk of their SME clients.

The solution? My current research on "actuarial tables" for supply chain management makes me believe the answer is there.