Shopify’s AI-powered lending arm is expanding rapidly, with Shopify Capital growing roughly 50 percent annually over the past three years. The company now deploys algorithms to identify merchants likely to need and repay funding, replacing traditional human underwriting with automated, pre-emptive offers. Outstanding balances reached nearly US$1.8 billion last quarter, reflecting strong demand.
Revenue from lending remains modest but rising, totaling US$258 million last year, up from US$205 million. The program also drives merchant growth on Shopify’s platform. The company declined further comment, though it emphasizes access over credit scores.
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