PayPal has announced it will invest $135 million into financial institutions and management funds that help underserved communities of colour to fight barriers to economic equity.
These investments are part of PayPal’s $535 million commitment to strengthen Black businesses and underserved communities, and help drive financial health, access and generational wealth creation.
The recipients of this most recent investment include Hope Credit Union, OneUnited Bank, Self-Help Federal Credit Union, CNote’s Wisdom Fund and various smaller institutions.
With these deposits, PayPal has now committed more than $500 million of capital through its racial equity initiatives.
The firm has previously invested in Optus Bank, LISC’s Black Economic Development Fund and 19 Black and Latinx-led venture capital funds, as well as awarding grants to Black-owned small businesses and community nonprofits that support them.
PayPal is in active conversations with several additional financial institutions and expects to deploy more funds throughout the year.
“By partnering with financial institutions that have deep ties to Black and other underserved communities of colour, we can create economic opportunity and make tangible progress toward closing the racial wealth gap,” says Dan Schulman, president and CEO at PayPal.
“Addressing systemic economic disparities and injustice will take sustained action across the private and public sectors. We are committed to doing our part to break the cycle of inequality.”
Bill Bynum, CEO at financial services provider Hope Credit Union, says: “Financial institutions owned by people of colour play an outsized role in closing the racial wealth gap by providing greater access to financing for diverse business owners and homebuyers.
“Unfortunately, investment in these institutions and the communities they serve has never been adequate. PayPal’s strategy recognizes that in an increasingly diverse nation, investing in racial equity is not only the right thing to do, but it’s good for business.”
Kevin Cohee, chairman and CEO at OneUnited Bank, the largest Black-owned bank in the US, adds: “Partnerships between America’s leading corporations, like PayPal, and Black-owned institutions like OneUnited Bank, are critical to creating the access to capital needed to address the economic challenges of underserved communities.
“These types of deposits make lending and social justice programs possible. OneUnited Bank looks forward to continuing to build this relationship with PayPal as we fight to eradicate the racial wealth gap.”
Related: eBay split from PayPal for paying sellers comes into effect