Launching online pools, a logical step for PayPal
Getting together to raise a certain amount for a purchase (a gift for a colleague or rent sharing by several roommates for example), the task may be complicated because no one has a lot of cash on hand. On the other hand, everyone has a smartphone in their pocket with, as PayPal hopes, its application. Since PayPal account deposits are made instantly (by debiting a card or bank account in euros), transferring money between your bank and PayPal is not a problem. In addition, PayPal works everywhere, even outside Euro zone. With these strengths, PayPal now offers everyone to create a pot online.
Once everyone has contributed, the money collected can be used to pay with PayPal an online purchase… Or can be transferred to a bank account. This last operation is not immediate: it takes several working days. On the other hand, it is free.
PayPal Pools: A Strategic Moment for Launch
For PayPal, launching pools online in late 2017 is a winning choice. At a time when this solution is not yet part of the daily life of the majority of French, PayPal hopes to arrive just in time to seize the emerging trend. The American firm is of course not the first to offer this service on the French market, but it has a major advantage: its jackpots are free. Unlike for example Leetchi, a subsidiary of Crédit Mutuel Arkéa, which charges 2.9% to 4% fee (unless the pot is spent at one of the partner stores). LePotCommun, the online pool of Groupe BPCE, charges 3.5% if the amount collected is less than € 2,000 and 2.9% if it is higher than this threshold.
This new feature is launched at a time when PayPal is growing in popularity. The service, which had 218 million active accounts in the third quarter of 2017, saw their number increase by 14% over one year. At the end of September 2017, PayPal recorded an average of 7.2 transactions per account, the highest in its history.