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PayPal Holdings Inc. is hoping to enable the power of community with a new funding service that enables multiple individuals to contribute to one account. Dubbed a “pool” by PayPal, the service means contributors can chip in to pay for group gifts, travel, special events, and other shared expenses.
Announced Thursday, the service is available in the United States, Germany, Italy, and Spain. PayPal says the service has been highly requested. PayPal says a 2024 survey it commissioned found that U.S. consumers pooled funds for group purchases 86 million times in 2023, with the most popular uses being group-funded gifts, travel, concerts, and sporting events.
To use, one individual with a PayPal account sets up the pool. She does this by selecting “Pool Money” from one of two locations in the PayPal app. After entering a title, description, target date, and goal amount, if wanted, a link to the pool can be shared via text, email, WhatsApp, and other services.
Recipients, whether or not they have a PayPal account, click the link to contribute. U.S. consumers without a PayPal account can use a credit or debit card to contribute, though a fee may apply.
When ready, pool organizers transfer the funds to their PayPal balance to spend or transfer to a linked bank account. If sent to another PayPal user, the organizer can add a note or animation.
PayPal’s Venmo app has offered group funding since 2023, when Venmo Groups launched, but it’s slightly different in that it automatically calculates the amounts due from an individual for expenses like rent, groceries, or gifts.
