US online payments giant has announced collaboration with a venture company to help early-stage entrepreneurs solve major global issues.
PayPal has teamed up with Village Capital, the nonprofit venture development organization that offers support for entrepreneurs solving major world problems. The companies will run three venture development programs, aimed at driving fintech innovation in the United States, India and Latin America.
They will assist about 40 fintech startups in providing financial services for the underserved and low-wealth individuals and small companies. PayPal employees will help participating ventures by offering their expertise and serving as the program advisors, mentors and speakers.
“At PayPal, we believe that affordable, convenient and secure financial services should be a right for everyone, and not a privilege for the affluent,” said Franz Paasche, Vice President of Corporate Affairs at PayPal. “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.”
By the end of each program, entrepreneurs will be judged according to six signs that their businesses are worthy of investment. The two entrepreneurs, chosen by other participants, will receive a financial aid of at least $50,000.
“The traditional system of brick-and-mortar financial institutions simply isn’t meeting the needs of millions of people across the world. With PayPal, we’ll be supporting entrepreneurs across the world who are developing solutions that help families save, invest, access credit and, ultimately, build wealth,” said Ross Baird, Executive Director of Village Capital.
The first event of this year’s program is the Village Capital Fintech: Mexico 2016 that will be conducted in partnership with Mexican financial company Credito Real and the US-based investment management corporation BlackRock in April, 2016. Village Capital has selected 10 Mexico-based ventures that will take part in the program.
Prior to this, the company, together with PayPal, will organize the 2016 FinTech Entrepreneur Showcase. The event, which will take place during SXSW on March 12, will give an opportunity for entrepreneurs within the fintech sector in the US to show their projects. Ten main candidates will demonstrate their ventures to the potential investors, partners and leading community members.
Village Capital has already supported more than 500 entrepreneurs through its mentorship programs and partner networks. Within the last five years, the participants of the program have generated more than 7,000 jobs, achieved 6 million customers and attracted over $110 million in investment. Moreover, 93% of its graduates are still operating their businesses.