PayPal has reportedly started referring German merchants to YouLend fixed-term loans of up to EUR 1 million, alongside its own Businesskredit.
On PayPal’s German financial services page, merchants can now apply for a YouLend loan of between EUR 1,000 and EUR 1 million, repayable within a maximum of 12 months. The loan carries one fixed fee and fixed weekly repayments, and funds are paid out from the following working day. YouLend handles the application and arranges the loan, reportedly with funding from its sister company Banking Circle.
How the arrangement works
PayPal’s terms state that it does not offer, grant, or service the loan and that it may be paid when a merchant takes one out. The product has reportedly not been formally announced and is reportedly not listed on PayPal’s pages in other European markets such as the UK, France, or the Netherlands.
This sits alongside PayPal’s own Businesskredit, which PayPal provides under its Luxembourg banking licence. First Businesskredit loans go up to EUR 250,000, with approval based on the merchant’s PayPal sales and account history, and repayments are taken as a set percentage of PayPal sales, with a minimum amount due every 90 days. The YouLend loan, by comparison, requires a credit check and has fixed weekly repayments that do not vary with sales.
PayPal’s lending and YouLend’s partners
PayPal said in March 2025 that it had lent more than USD 30 billion to over 420,000 business accounts worldwide. YouLend, for its part, already works with several platforms in Germany. It provides financing for eBay Germany’s Seller Capital programme, with sellers able to access up to EUR 2 million through a direct integration.
Its other German partners include REA Card, a provider of POS terminals and cash register systems for offline retailers, and JTL, which offers YouLend financing within its JTL-Wawi ERP system for e-commerce merchants. YouLend has also partnered with comrce, whose e-commerce hub is used by around 24,000 German merchants. YouLend also reportedly provides Stripe Capital in Germany.
