Oct, 2021 - By WMR
The company also announced a partnership with Synchrony Bank for PayPal Savings, a new high-yield savings account.
PayPal was talking about "super app" ideas for a while, recently telling investors that its planned digital wallet and payments app has been given the green light to debut. The first version of that app was released on September 21, and it has a variety of financial features such as direct deposit, payment services, an online wallet, peer-to-peer payments, e-commerce services, cryptocurrency, and more. These modifications alter PayPal from a payments service with a few other features added in and there towards a more complete financial tool.
Though PayPal does not intend to be a bank; the latest app will include functionality for paycheck Direct Deposits with the help of PayPal's bank partners, bill pay, and more, making it a compelling option for individuals considering switching their funds to neobanks such as Chime or Varo. These improvements could help PayPal compete, as getting paid early is one of the most appealing benefits for individuals adopting digital banking apps over conventional banking.
Customers' PayPal funds could be utilized for activities such as paying the bills, savings, and shopping, among other things, in addition to shifting their paychecks to PayPal. According to PayPal, customers can view, pay, and track bills from thousands of firms, including credit cards, insurance, utilities, phones, TV, and the internet.
According to PayPal, the new app is building the framework for further new products shortly. The company's largest project is a goal to join the financial market and compete with other mobile investing apps such as Robinhood. When it launches, users will be able to buy stocks, fractional stocks, and ETFs. Later updates will include support for purchasing using QR codes in an offline environment, as well as options for utilizing PayPal to save while shopping. The updated application will be released in stages starting in the U.S. and will be completed in the coming weeks.