by Key Takeaways
- PayPal’s resurrected money pools enable bill splitting and saving for shared objectives.
- Without having a PayPal account, several people can still contribute to a shared goal.
- The person in charge of the pool has authority over the money that is gathered and can either spend it or move it to their own account.
With PayPal’s money pools, you and other users can pool and save money for shared expenses and financial goals without incurring extra fees.
PayPal’s mobile app now offers a money-pooling feature that allows you to keep tabs on your spending and make contributions to group expenses like presents, dining, and travel. It enables you to either build your own pool or add to ones made by almost anybody you can financially trust.
According to PayPal, there are no extra fees associated with using pools, and you can still contribute without having a PayPal account. The money will be under the organizers’ control, and they can spend it directly or move it to their PayPal or bank accounts.
The function, according to the money transfer app, encourages relationships and facilitates “planning a trip with friends and family or chipping in for a group gift.” Only a few nations will first have access to the feature, including the US, Germany, Italy, and Spain. Plans for additional growth have not been disclosed by the company.
How PayPal Money Pools Are Created and Operated
The PayPal app offers quick and simple alternatives for hosting or contributing to a pool. This is what you must do:
- To create a pool, open the app and select “Pool Money” from the menu. As an alternative, you can start a new pool by selecting “More Options” and then tapping “Send/Request.”
- Add a goal date, a title, a description, and the amount you hope to raise during that time frame.
- A web link that can be shared via any messaging app can then be used to invite others to join the pool.
- Just click the link and pay with any accepted payment method to donate to an already existing app.
The Use of PayPal Money Pools Is Not New
Despite PayPal’s promotion of pooling as a “new experience,” the practice isn’t actually novel in the ecosystem. The initial money pool was introduced by PayPal in 2017 to enable “people to collect money from each other and keep track of group spending.”
PayPal did, however, abandon the feature in 2021 in order to focus on “more specialized money-raising services” and “consistently evolving” the money-transfer experiences. The absence of assistance for those without PayPal accounts may have been the true cause, which the business has already fixed. This time, the UI is much easier to use.
In the meantime, a number of rivals have emerged that are either full-fledged payment providers like Venmo, which introduced its group splitting and payments function earlier this year, or specialize in bill splitting, like Splitwise or Givetastic.
