Shopify is offering loans to small businesses selling on its platform and it's called Shopify Capital.
👉 Background: Ahhhh Shopify, the Canadian e-commerce platform that has been seriously busy lately. And now, Shopify's laughing all the way to the bank... but seriously... it's taking on the banks.
👉 What happened: Shopify is offering loans to small businesses selling on its platform. We're talkin' anywhere from $200 to $2.5 million.
👉 What else: It’s called Shopify Capital, and it’s part of a wider trend of non-bank companies embedding financial services within their platforms.
💡Embedded finance is when retailers, tech platforms or other companies offer financial services to their customers
💡 Companies with loyal customer bases are looking for new ways to monetise their audience. And on the flip side, it works for customers who want convenience or want to stick with a brand they trust.
💡The embedded finance industry in Australia is expected to be worth US$16 billion by 2029. So you can see why Shopify is keen to get its hands into this space.
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