PayPal has introduced a money pooling feature designed to help friends and family share expenses for group purchases.
This new functionality is being rolled out globally, including in the US, Germany, Italy, and Spain. It allows customers to create a pool within the PayPal app or online, invite others to contribute, track contributions, and transfer the collected funds to their PayPal balance for spending or withdrawal.
“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,” says John Anderson, GM, SVP of consumer at PayPal. “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.”
A 2024 PayPal survey revealed that consumers in the US pooled money for group purchases approximately 86 million times last year, with popular use cases including group-funded gifts, coordinated travel, and special events like concerts and sporting events.
Customers can create a pool for free within the PayPal app and can contribute to an existing pool using their PayPal balance or linked bank account. Pool organizers are able to invite friends and family members to contribute, regardless of whether they have a PayPal account. Additionally, pool organizers can transfer the collected funds to their PayPal balance for instant spending or withdrawal to a linked bank account.
This feature revitalizes a previously launched money pooling tool that was discontinued in 2021 due to competition from alternatives that didn’t require all contributors to be PayPal users. The new service addresses this challenge effectively.