eBay has introduced Open Banking technology into its Seller Capital program, a move designed to broaden financing opportunities for sellers on the platform.

This update enables sellers to share their banking details with eBay’s financial partners. In turn, these partners can leverage this expanded view of the businesses’ finances to make more informed lending decisions.

As small businesses continue to face difficulties in obtaining affordable credit, a survey by Goldman Sachs reveals that over three-quarters of such enterprises are worried about accessing capital. By incorporating Open Banking, eBay aims to bridge this gap and offer financing to a larger group of merchants.

Enhancing loan evaluations through financial data

Under the new system, sellers can opt to provide real-time account information, including cash flow and balances, from beyond eBay’s platform. Company representatives state that this method streamlines the application process while allowing lending partners to conduct quicker and more personalized credit assessments.

eBay officials suggest that Open Banking could result in higher approval rates, larger loan amounts, and more competitive interest rates for sellers. They also note that the program has helped many sellers obtain working capital recently, with tens of thousands of merchants benefiting from this service.

The integration underscores the reality that most small and medium-sized businesses operate across multiple sales channels, not just on eBay. By taking into account external revenue streams, lending partners can better understand sellers’ financial health, potentially qualifying more businesses for funding. The updated Seller Capital service is currently available to eligible merchants in the UK and Germany, with plans for a U.S. rollout later this year.