PayPal deposits $135 million in financial companies serving minorities
PayPal, the giant fintech company that owns Xoom, announced new plans to do more to help minorities and underserved communities.
Xoom owner to invest in underserved communities
PayPal is one of the biggest fintech companies in the world with a market capitalisation of almost $300 billion. The company owns its eponymous PayPal brand and other subsidiaries like Xoom, Honey, Venmo, and Zettle, among others.
In a statement on Thursday, the company said that it will deposit $135 million of its funds in financial institutions serving minorities in the United States. The funds are part of a $535 million commitment the company made in 2020.
Some of the companies that will benefit from this initiative are Hope Credit Union, OneUnited Bank, and Self-Help Federal Credit Union, among others.
In addition to the deposits, the company has invested in black-led venture capital firms and offered grants to Black and Latinx small businesses. In a statement, the company’s CEO said:
“By partnering with financial institutions that have deep ties to Black and other underserved communities of color, we can create economic opportunity and make tangible progress toward closing the racial wealth gap.”
More companies investing in minority businesses
After the murder of George Floyd by a police officer in 2020, more companies announced measures to invest in minority companies. In September 2020, Square announced a $100 million fund to invest in minority and underserved companies. Square owns Cash App, the popular peer-to-peer payments app.
In June last year, Facebook announced that it would spend more than $1 billion in minority-owned businesses while Apple invested $10 million to Harlem Capital. Harlem is a fund that invests in minority-owned companies. Apple has also set aside more than $100 million to back minority businesses.
