PayPal.Me is the latest release from the payments corporation, with the technology allowing users to pay back money borrowed from their friends and family using a customised URL.
Taking control over IOUs
PayPal has found that more than $50 billion is owed worldwide in unpaid, small debts (otherwise known as IOUs).
The payments firm allows users to take control over their unpaid debts by creating a personalised PayPal.Me link (PayPal uses the example of paypal.me/meron).
Customers can then email or text their loved ones their PayPal.Me link, making it easier for them to reclaim their funds. PayPal advises users to take these three steps when using the service for the first time:
- Share your personalized PayPal.Me link in a text, over email, instant messenger, social media post, blog, or on the web.
- Recipients click the link on any device no matter what mobile phone, tablet or computer they are using.
- Recipients enter the amount, hit send and the money is on the way… that’s it! The money is quickly transferred into your PayPal account.
Worldwide problem
The PayPal Money Habits Study found that failing to reclaim IOUs is a worldwide problem. PayPal’s research found that ‘‘over 50 percent of Americans find it awkward to ask their friends or family to pay them back.’’
PayPal hopes that the technology will make payment transfrers much easier for people around the world, with PayPal claiming that bank transfers can often being a frustrating process.
As well as being made available in the states, PayPal.Me is launching in 18 countries worldwide, including Germany, UK, Australia, Canada, Russia, Turkey, France, Italy, Spain, Poland, Sweden, Belgium, Norway, Denmark, Netherlands, Switzerland, and Austria.
Customers who use a debit card when repaying IOUs will not be charged to use the service, but a small fee will be issued for credit cards. Large companies that use the technology will also be charged.
Whitepapers
Related reading
5 ways blockchain can change the cross-border payments landscape
Cross-border payments is a changing sector of the industry, driven by customers demanding little to no friction and encountering multiple steps, intermediaries ... read more
The SME technology revolution | video
The UK is home to 5.4m micro SMEs that have fewer than nine employees, according to the House of Commons library. They ... read more
JP Morgan blockchain network showcases banks’ DLT progress
JP Morgan’s expansion of its blockchain-based interbank payments project signals that major banks are stealing a march on disruptors and startups by ... read more
Security a priority for EU’s INATBA blockchain taskforce
The European Commission’s new blockchain initiative, the International Association for Trusted Blockchain Applications (INATBA), should focus on quashing extant security concerns around ... read more
