PayPal's invested in a small UK artificial intelligence startup, Cloud IQ

Lynsey Barber
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Cloud IQ is a small investment for the payments giant (Source: Getty)

US online payments giant PayPal has backed a small UK startup which is using artificial intelligence to get people spending more online.

Cloud IQ has raised £4m from the firm along with existing investors Nauta Capital, Juno Capital and the Welsh government run Finance Wales.

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The London headquartered startup uses AI to interpret data and behaviour that can help online sellers increase sales.

“Through our recent partnership with Cloud IQ it is clear we share a common vision to improve the consumer journey,” said PayPal's head of global corporate development Jeremy Jonker. “Today, Artificial Intelligence powered technology is finally able to deliver individualised consumer experiences at scale."

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Cloud IQ co-founder James Critchley said the backing was a "testament to the momentum we are building". The startup will use the cash to hire in engineering and among it senior team, as well as opening a customer service centre in Cardiff.

In recent weeks, Paypal has struck a number of new partnerships in the payments space. It joined up with Bank of America so its customers can use PayPal to pay in stores and extended a similar deal with Visa to Europe. And Apple shoppers can now pay with PayPal when making purchases online.

PayPal boasts a string of investments in largely payments-related startups, from seed stage through to larger multimillion pound rounds.

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