PayPal has announced a group money pooling feature in the U.S., Germany, the U.K., Italy, and Spain just in time for the holiday season. The feature will enable users to collaborate with friends or family to collect funds for shared expenses such as trips, gifts, or other group activities.
The company initially launched a similar service called “Money Pools” in 2017, responding to emerging competitors. However, the feature was discontinued globally in November 2021. At the time, PayPal didn’t provide a clear explanation for shutting it down. However, factors like competition from services that didn’t require contributors to be PayPal users and the company’s pandemic-driven focus on charitable giving may have played a role.
PayPal is now restoring the service, citing “high customer demand” as the reason for its revival.
“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,” John Anderson, GM, SVP of Consumer at PayPal, said in a statement.
The new version allows users to create a pool directly from the PayPal app or website. Users can customise their pool with details like a title, description, goal amount, and target date by selecting the new “Pool Money” option from the app menu or the “Send/Request” section.
The primary enhancement is that contributors no longer need a PayPal account to add funds to the pool, making it more accessible than before. The pool creator can share a link through text, email, WhatsApp, or Messenger, making it easy for others to contribute. They can also monitor contributions and withdraw funds for spending at any time.
While apps like Venmo and Splitwise offer tools to divide expenses after a bill is paid, PayPal’s tool focuses on collecting money upfront, which is useful for planning group activities or purchases ahead of time.