PayPal is introducing some new features that allow groups of friends or family members to pool their money together for shared expenses, such as trips, gifts, or any other collective purchases. This new feature will be available in the U.S., Germany, the U.K., Italy, and Spain just in time for the holiday season.
In fact, this isn’t entirely new for PayPal. They previously had a similar feature called “Money Pools,” which they launched in 2017. This was likely a response to other startups that were already offering similar services and gaining popularity. However, PayPal decided to discontinue Money Pools globally in November 2021. According to a PayPal spokesperson, they are bringing this feature back now because many customers have expressed a strong desire for it.
While PayPal didn’t give a detailed explanation for shutting down Money Pools back in 2021, it’s worth noting that by that time, there were several competing services available that didn’t require all contributors to have a PayPal account. This lack of flexibility may have contributed to the decision to close Money Pools. Additionally, during the COVID-19 pandemic, PayPal shifted its focus to creating products for charitable donations, which put them in competition with platforms like GoFundMe. We are currently reaching out to PayPal for more information on why they chose to relaunch this feature now, and we will provide updates if we receive any.
With the new version of this pooling service, users can easily create a money pool through the PayPal app or website. To start, they simply need to select the new “Pool Money” option in the app menu, which can also be found under the “More Options” section in the “Send/Request” tab.
One of the key benefits of this new feature is that friends or family members can contribute money directly to the pool through a shared link, even if they don’t have a PayPal account. When creating a pool, users can set a title, write a description, choose a target date, and optionally set a goal amount for the pool. Once created, the pool will generate a link that can be shared with others via text, email, WhatsApp, or Messenger.
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The person who creates the pool can keep track of how much each participant has contributed. They can also withdraw the collected funds to their own PayPal account at any time to spend on whatever purpose the pool was created for, whether that’s a trip, gifts, or experiences.
John Anderson, who is the General Manager and Senior Vice President of Consumer at PayPal, stated, “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.”
While there are other apps like Venmo and Splitwise that help split expenses after a bill has been paid, this new pooling feature is particularly useful for gathering money from people before making a purchase. This makes it easier for groups to manage shared expenses upfront, rather than trying to settle up later.
