Branching out into payments will help it diversify and compete more directly with industry leaders like PayPal and Square.
The company plans to offer tools that will enable brick-and-mortar businesses to accept card payments in-store and online, President Kathryn Petralia saidin an interview.
“The monoline businesses have a hard time succeeding long term,” Petralia said, adding that Kabbage hopes the move would deepen its relationship with customers.
“We have seen a huge pain point around cash flow management,” she added, citing high monthly fees and lengthy contracts of payment services by other providers.
Launched in 2009, Kabbage is among a group of startups that use digital technologies to lower lending costs and offer credit faster than large banks.
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