Money Pools, a service just launched by PayPal, has been the talking point for a number of different firms, business websites, and more. But what exactly is it? We take a look at the working behind PayPal's latest tool.
For business owners, the first hurdle is fundraising. This is where Money Pools comes in. By eliminating the need for physical encounters, Money Pools lets users create fundraising pages through which contact can easily contribute. Whether it's an item, trip, gift, or event, PayPal users can now make investments with the tap of a button.
Money Pools is currently being used 16 different countries including Germany, the United States, and the United Kingdom. The Money Pool creator can customize the pool as he chooses including adding a goal amount he desires to reach, the description or image of an item, and even keep the contributors identity anonymous. Similar to sites like Kickstarter and GoFundMe, Money Pools makes it easier for hosting crowdfunding campaigns online, but also carries a certain social aspect to it as well. Here, the creator can send reminders via email, Facebook, Twitter, or other social media platforms and even track the funds seamlessly. All the funds are collected in the Money Pool of the creator and is available for him to use at any time.
PayPal's previous peer-to-peer payment app, Venmo, works similarly, but Money Pools is far easier to monetize thanks to its cost-free usage. While similar crowdfunding sites such as Kickstarter charge 5% of what is raised along with additional charges, Money Pools could effectively see itself as the go to portal for fundraising in the immediate future.
Since last year, PayPal has significantly grown in popularity around the world with over 29% growth and a 14% increase in customer base. With over 218 million customers making over $114 billion in payments, it is no wonder why PayPal is one of the best payment portals in the world. The company has also integrated itself with Facebook Messenger to allow users to send and receive cash instantly.
According to the top research analysts, the peer-to-peer payment market will be dominant by the year 2021 and payments made online will hold a large chunk of that market. With so much positivity surrounding the company, PayPal's Money Pools looks destined to be used around the world as the primary means of fundraising for firms and individuals.