In addition to the recent equity capital, Verde, Itaú, and other creditors have provided the firm with a $20 million loan financing facility.

Ume, a 2019 startup, runs a platform that lets customers in Brazil finish transactions with split repayments utilizing Pix, the nation's 2020-launched immediate payment system.

According to PayPal Ventures, Ume's native Pix compatibility "ensures rapid and secure transactions that enhance the user experience and streamline the credit process."

PayPal Ventures claims that artificial intelligence (AI) can "analyse a vast array of data points more accurately and efficiently than traditional methods, leading to more precise risk assessments, better-informed lending decisions, personalised loan terms, and higher approval rates" and that this approach powers the credit decisioning technology behind the buy now, pay later (BNPL) service.

According to Ume, the financing will allow them to "expand our platform to reach even more businesses and consumers nationwide, by further leveraging Pix and AI." The startup also intends to increase its marketing, sales, and technical infrastructure investments while expanding its footprint throughout Brazil.

PayPal's dominance of the round demonstrates its ongoing commitment to supporting start-ups driven by AI. The investor spearheaded a bigger $20 million Series A fundraising for Gynger, a company located in New York, in June. The 2021-founded company runs an AI-powered payments network intended mostly for IT buyers and sellers.