International banks lead PayPal financing

International banks lead PayPal financing

Person-to-person payments operator PayPal has completed a $90 million financing round featuring investments from Spain's Bankinter, Holland's ING Bank, Credit Agricole of France, Japanese Internet bank, eBank and US-based Providian Financial.

Currently serving 6.5 million customers, California-based PayPal allows people and businesses to send and receive money via e-mail. The new crop of overseas banking investors are expected to partner with PayPal in promoting the service internationally. The company has grown phenomenally quickly, but as a lone private operator has also struggled to meet consumer service expectations.

"As one of the most technologically advanced banks in Europe and the pioneer of Internet stock trading in Spain, we know that our customers appreciate the convenience of conducting transactions online," says Bankinter spokesman Jaime Echegoyen. "By working with PayPal, we continue to deliver valuable online offerings to customers well beyond traditional financial services."

Take Wakayama, COO of eBank, a joint venture of Sumitomo, Itochu, and Hitachi, says: "As an Internet bank focused on improving payments for businesses and consumers, eBank is pleased to partner with PayPal to help create a new, global payment system on the Internet."

PayPal has so far raised approximately $225 million in total equity financing, including a $100 million round announced on 5 April, 2000.

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