PayPal is partnering with venture development group Village Capital to accelerate financial technology innovation for underserved consumers and small businesses in the U.S., Latin America and India.
Village Capital supports and mentors seed-stage entrepreneurs focused on financial inclusion through its startup development program, which grants at least $50,000 of investment capital to the top two graduates. Through its partnership with PayPal, it aims to help about 40 startups focused on improving financial access to low-wealth individuals, families and small businesses through technology and innovation. PayPal employees in each market will act as their mentors and advisors.
Companies selected in this year’s programs are expected to create jobs and aid households over the next two years.
“Through our expanded relationship with Village Capital, we’re pleased to help build a more supportive ecosystem for FinTech social impact entrepreneurs, which we see as critical to our vision of improving the financial health of underserved individuals and businesses around the world,” Franz Paasche, PayPal vice president of corporate affairs, said in a Mar. 8 news release.
The first program will launch in Mexico City in April with 10 startups from across the country. Investment management firm BlackRock and Crédito Real, a Mexican financial services provider, are providing additional support for the program.
PayPal and Village Capital will host a showcase at SXSW as part of the recruitment process for U.S. program candidates, who can present their ventures to invited investors, community leaders and potential partners.
PayPal has worked for the past several years to improve its ability to spot and foster new payments technology from third party developers, an effort that has included an expansion of its Blueprint program.