Paypal has introduced an innovative way for family and friends to raise and manage funds by pooling money in a peer-to-peer fashion.
The online payment platform announced this on 14 November. With the new feature, family and friends have a simple way of managing group expenses for the things that matter to them.
This feature is initially rolling out to customers in the U.S., Germany, Italy and Spain.
A new way to pool funds
Think of the new PayPal feature as GoFundMe, but for those contributing to use. Users can set up pools online and invite family and friends to contribute towards shared expenses like gifts, travel, or other special events.
They can then track group contributions and later transfer the funds to their PayPal balance or withdraw cash to spend on whatever the funds were raised for.
Commenting on the rollout, GM, SVP of Consumer at PayPal, John Anderson said:
“Everyday life is all about connections, whether it’s chipping in for a group gift or planning a trip with friends and family. PayPal understands this and aims to make those moments easier. We’re excited to introduce a simple, no-cost solution for collecting and managing funds for group purchases, helping our customers navigate both the social and financial aspects of their lives with each.”
The service is free of charge for both those creating pools and those contributing. Pools can be funded using PayPal balances or linked bank accounts, so contributions are not restricted to PayPal users.
Responding to needs
PayPal’s money pooling feature is a response to needs, as the company discovered that U.S. consumers commonly pooled money for group purchases.
Last year alone, customers pooled funds for group-funded gifts, group travel, and special events like concerts or sporting events, approximately 86 million times.
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