- 86% of Irish consumers say that they have difficulty getting reimbursed for group purchases, noting that asking for money owed to them by work colleagues is ‘awkward’
- PayPal currently has one million active users in Ireland
- The brand’s new service will make it easier for consumers to collect money owed to them
PayPal is no longer just a way to transfer money internationally for Irish users because the payments brand just entered into the money pool business. The new PayPal feature aims to make it easier for groups to chip in for shared expenses. The said service will be available to PayPal users in Ireland, according to reports. Known for its relatively affordable overseas transfer rates, PayPal’s new money pool service will be free of charge.
Based on recent data from the paytech, PayPal currently has one million active users in the country and many of them are reportedly delighted about PayPal’s new feature. The new service taps into the group purchases market and makes it possible for users to collect money owed to them. This includes travel expenses, restaurant bills, and other shared purchases, according to the company.
Data shows that 86% of Irish consumers have engaged in group purchases in the past but found it difficult to reclaim their money. According to the report, 32% of said population had difficulty getting reimbursed. A good 21% also had problems with claiming money owed to them by their colleagues as asking for a reimbursement is “awkward”. Even family members’ shares are difficult to manage, based on the findings.
With PayPal’s new service, consumers can now create money pools right on the payments app or its website. The money pool’s URL can then be shared with people who are contributing to the purchase. The fact that it is free is also another plus, according to consumers, but PayPal notes that the service is only free of charge if euros are used. Using other currencies will result in conversion costs.
PayPal Vice President Louise Phelan told reporters that the brand will be scrapping fees for some of its services to encourage more people to use the payments app.
“People have been looking for it, and we saw the opportunity in the market”, she said. “It’s a great opp for Irish consumers to set up that facility instead of working to cash”, Phelan added.
Fintech observers in Dublin say that digital money transfers are now more mainstream in the country than before as they have become increasingly convenient. PayPal is reportedly protecting its business in Ireland against competition. However, it is noted by The Irish Times that digital payment options in the country are still limited. For the money pool service, the main competitors are still cash and bank transfers. Ms Phelan noted that PayPal’s new feature is a “move away from lengthy bank transfers”.
“It’s the next iteration of innovation for us. Cash is not king, convenience is”, she added.
Find out more about the newest developments in the paytech industry here.
