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PayPal to launch credit services for small Brazilian businesses

PayPal Holdings Inc. will begin offering credit services in Brazil, with a focus on small businesses, Valor Econômico reported, citing Federico Schumacher, PayPal's general director for Brazil and Mexico.

"In the area of credit, we decided to enter because we deal with very small businesses. And this is where we can add value, not in big companies," Schumacher told Valor.

One of the products PayPal will bring to the country is Working Capital, a credit line offered to small retailers. PayPal plans to launch the product in Brazil over the next months through a partnership.

PayPal is also interested in investing in Brazilian companies, given the rise of financial technology startups and the need for "more professional venture capital" offerings in the country, Schumacher said.

The U.S.-based online payments system has been operating as a payment institution in Brazil since May.