[mcaguru]

"Square and PayPal’s lending businesses differ from other online lenders in that they can solicit their existing payments customer base at virtually no cost. OnDeck, meanwhile, spent $53 million last year alone on sales and marketing to acquire loan customers. " We can throw in Kabbage as having a similiar model as these two and mentioned they may enter the payment processing space by end of year to add addtl revenues.

more likely for the credit card processors (i'm talking large acquirers/vantiv-first data etc) to become funding houses then for an ondeck to become a payment processor and acquire merchants for the sake of funding them..its a non-starter in my opinion !