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PayPal Introduces a new Social Feature called “Money Pools”

by on November 11, 2017
 

Crowdfunding has been one of the more innovative industries over the past few years. Multiple platforms and service providers focus on this business model as we speak. The whole concept of crowdfunding has received a lot of positive and negative attention alike. PayPal things there is a bright future ahead for this business model, though. In fact, they have launched a new Money Pools feature to create a new “social experiment” of some sorts.

Established financial giants are always looking for new ways to remain relevant. PayPal, while an innovative company, isn’t backing down from a challenge either. Up until now, the company had shown little interest in the crowdfunding industry. Not entirely surprising, given the risk of chargebacks and fraud in this particular industry. At the same time, no one can ignore the concept of letting everyday people invest in potentially successful companies. There is good money to be made with the right mindset, that much is certain.

A Bold Move by PayPal

The new Money Pools feature will introduce some interesting changes for PayPal. Users of the platform can now come together to track and share costs of spending. Although it is not advertised as a crowdfunding-esque tool, it offers some similar features. The goal is not to facilitate fundraising for activities such as product development. Nor is there a way to offer perks, rewards, or other incentives. It is a different way of tackling the concept of group activities and personal goals. On paper, it is a different breed of crowdfunding altogether, but it still falls in the same category.

For the time being, this new feature will be available in 17 countries to begin with. A bigger rollout may follow eventually, but has not been officially confirmed at this point. The “Your Pools” option should become visible in the user dashboard as we speak. It is an interesting new way of providing valuable services to existing PayPal users. It will be exciting to see how the users respond to this change, though. They are giving PayPal access to a lot of sensitive information by using this feature.

On the flip side, customers can customize this page with many different details. Having a personalized option is pretty smart on PayPal’s behalf. The link can be shared across social media or through text and email. All contributions can be done in an anonymous manner, which is rather surprising. An interesting development in the world of finance, that much is certain. The bigger question is whether or not PayPal will effectively embrace crowdfunding one day.

Header image courtesy of Shutterstock

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