PayPal introduces new mobile payment service
Online payments service PayPal has launched a new method of mobile payment this week where customers can create their own URL that they can receive money through. Users will be able to send each other payments through the web, email or text without having to use a mobile app.
Dedicated URLs will use the domain name paypal.me, followed by a username. The URL can be sent to friends, family and other recipients, who can select an amount and pay directly to the URL from their own user account without using an app.
According to PayPal, people in the UK owe millions of pounds in casual borrowing amongst friends and family, but often give up on collecting those debts due to embarrassment or difficulty.
Paypal.me is one of several new peer-to-peer mobile payment sites to launch over the past few months. It is hoped to compete with Google’s Android Pay, Square Cash and PayPal’s own popular app Venmo.
Paypal.me will charge a 2.9 per cent fee for credit card transactions, but nothing for payments from bank accounts and debit cards.
Mobile payment is expected to grow significantly over the next few years, and could account for $1 trillion of transactions by 2017 according to International Data Corporation’s research.