Tech

PayPal offers up to $500 credit for federal employees affected by shutdown

Key Points
  • PayPal said it will offer $25 million in interest-free credit to its users who work with the U.S. federal government and are impacted by the shutdown.
  • The partial shutdown, which hit the four-week mark on Friday, is the longest in U.S. history.
  • PayPal said it will take up to three business days to deposit the cash advance into user's accounts from the date the company verifies their employment.
Dan Schulman, CEO, PayPal
Mark Neuling | CNBC

PayPal said on Friday it will offer $25 million in interest-free credit to its users who work with the U.S. federal government and are impacted by the shutdown.

Employees who use PayPal Credit will be able to avail an advance of up to $500 each, without having to pay any interest, and the program will last until the government reopens and employees receive their first paycheck, the company said on its website.

The partial shutdown, which hit the four-week mark on Friday, is the longest in U.S. history. The shutdown means 800,000 federal workers nationwide would continue to go unpaid and some government functions would remain impaired.

The shutdown also clouds the outlook for spending, retailers and the economy at large because executives and policymakers weigh not just the direct impact of 800,000 federal workers going without pay, but also how much it can hurt consumer and business confidence.

PayPal said it will take up to three business days to deposit the cash advance into user's accounts from the date the company verifies their employment.

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Key Points
  • The partial government shutdown is already the longest ever as it extends into its 27th day. 
  • The effects of the closure will only widen if it passes multiple key dates.