When Airbnb acquired and subsequently shut down Tilt — a platform that let people pool together to pay for items or events — many( including former Tilt employees) were left wondering what could and would replace it.
PayPal has stepped into the fray in an attempt to provide its own answer. The payments giant has now launched Money Pools, a service that takes on the likes of GoFundMe and other group-based payment and funding platforms, where people can create pages to let their contacts fundraise for a specific item or event, such as buying a group gift, a group trip-up, or housemates paying the rent.
PayPal is launching the service today in 16 countries — Australia, Austria, Belgium, Canada, Denmark, France, Germany, Italy, Netherlands, Norway, Poland, Spain, Sweden, Switzerland, United Kingdom and the United States. Anyone who has a PayPal account in these regions can create a Money Pool, or contribute to one.( Without a PayPal account, you can’t employ it .)
The service, PayPal says, is free when you use money from your PayPal wallet, or a debit card or a bank account links between your PayPal account. Standard PayPal fees apply when you have to make a currency conversion or use a credit card( also linked to your PayPal account ).
Once you create a page, Money Pools runs similarly to other social fund sites like GoFundMe: you can personalise the page with paintings and how you want contributions to seem( public or anonymously ); you can update the site’s activity feed; and you can — important for social-payments — share a link to the campaign with a short URL.
Since being founded virtually twenty years ago, in 1998, PayPal has made a name for itself as an e-commerce pays behemoth, both by way of powering transactions attained on eBay, its former owned; as well as for other electronic pay services beyond that such as point of sale services( via PayPal Here) and more, with the company today holding a market cap of over $88 billion.
PayPal actually already had a mobile app — nine years ago, in fact — for family and friends to make payments to each other. But by and large, the company’s move into social pays — which tap into social graphs to spur transactions — has been gradual.
PayPal’s 2013 acquisition of Braintree( the e-commerce payments provider that vies with Stripe) gave it ownership the well-regarded peer-to-peer fund transfer service Venmo, and lately PayPal seems to be taking more steps to give social pays a move. Recent growths have included letting people pay each other money through Facebook Messenger( launched last month ), and the capacities for retailers to accept Venmo-powered pays( also launched just weeks ago ).
( PayPal’s social network efforts have not always been smooth. Witness the issues that PayPal has had crowdfunding platforms in the past. Even today, GoFundMe — the massively popular platform that lets people crowdfund for causes — now only accepts PayPal via certified charities not individuals .)
There are a number of other services in the market today that let groups of users pool together to pay for things, but many of them seemed geared towards specific utilize cases.
For example, Splitwise focuses on letting groups share the payment of bills; and WeTravel is also intended to groups taking trip-ups together. And Airbnb may be working on something in this space too: when it shut down Tilt, the startup indicating that it “focus will be to incorporate our social payments experience into their product ecosystem.”
It’s a crowded region of the market indeed — a sign of the opportunity that PayPal now wants to tap for its next phase of growth.
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