Ebay has incorporated Open Banking technology into its Seller Capital program, a move designed to broaden access to financing for merchants on the platform.

This update permits sellers to share their banking data with Ebay’s lending partners, enabling these partners to make funding decisions based on a broader perspective of the business’s financial status.

Following persistent difficulties for small businesses in obtaining affordable credit, a survey by Goldman Sachs indicates that more than three-quarters of small enterprises are worried about their ability to secure capital. Ebay aims to address this issue through Open Banking and extend financing opportunities to a wider range of merchants.

Utilizing financial data for improved lending decisions

Under the new system, sellers can elect to provide real-time account information, such as cash flow and balances, outside of Ebay’s platform. Company representatives assert that this method simplifies administrative procedures during the application process while allowing lending partners to offer faster and more customized credit evaluations.

Ebay officials suggest that integrating Open Banking could result in higher approval rates, larger loan offers, and more competitive pricing for sellers. They further note that the program has recently enabled substantial amounts of working capital for numerous merchants, with tens of thousands of sellers having accessed financing through the service.

This integration highlights the reality that most small and medium-sized businesses operate across multiple sales channels beyond Ebay. By factoring in external revenue sources, lending partners are anticipated to get a clearer understanding of sellers’ overall financial health, potentially including previously ineligible businesses within funding eligibility. The updated Seller Capital service is currently accessible to eligible merchants in the United Kingdom and Germany with plans for a rollout to qualifying sellers in the United States slated for autumn 2025.