PayPal Launches Its ‘Super App’ Combining Payments, Savings, Bill Pay, Crypto, Purchases and More

PayPal has been talking about its “super app” plans to sometimes, having I recently told investors their next digital wallet and payments app had been launched. Today, the first version of that app is officially unveiled, offering a combination of financial tools including direct deposit, bill pay, a digital wallet, peer-to-peer payments, shopping tools, encryption capabilities, and more. The company also announces its partnership with Synchrony Bank for its new high-yield savings account, PayPal Savings.

These changes move PayPal from largely a payments utility that is added to other offerings here and there, to a more comprehensive finance app. Although PayPal itself does not claim to be a “bank”, the new application offers a range of competitive features for those considering switching their finances to neobanks, such as Chime or Varo, as it will now also include support for direct deposit from paychecks. by Paypal. banking partners, bill payment and more.

By enabling direct deposit, PayPal users can receive payments up to two days in advance, which is one of the biggest draws among those considering digital banking apps over traditional banks.

In addition to transferring their paychecks to Payal, customers’ PayPal funds can be used for things that are part of everyday life, such as paying their bills, saving, or shopping, for example.

The enhanced bill pay feature enables customers to track, view and pay bills for thousands of businesses, including utilities, TV and Internet, insurance, credit cards, phone and more, PayPal says. When bill payment first arrived earlier this year, it offered access to thousands of (single digit) billers. Now, it will support some 17,000 invoice issuers. Customers can also discover billers through an improved smart search feature, set reminders to receive notifications of upcoming bills, and schedule automatic payments for bills they have to pay on a regular basis. Not only do invoices have to be paid with the funds currently in your PayPal account, but they can be paid through any eligible funding source that is already linked to your PayPal account.

Through a partnership with Synchrony Bank, PayPal Savings will offer a high-yield savings account with an Annual Percentage Yield (APY) of 0.40%, which is more than six times the national average of 0.06%, it says. the company. However, that is lower than the main rivals in the digital banking market supply, such as Chime (0.50%), Varus (starts at 0.20%, but users can qualify to get 3.00% APY), Marcus (0.50%), Ally (0.50%), ONE (1.00% or 3.00% in autosave transactions) and others. However, the rate can be attractive to those who are switching from a traditional bank, where rates tend to be lower.

PayPal believes that its high-yield offering will be able to compete not only on the APY, but on the strength of its bundled offers.

Image credits: PayPal

“We know that roughly half of customers in the United States don’t even have a savings account, much less one with a very competitive rate,” says PayPal Senior Vice President of Consumer Julian King. “So overall, we think that by bringing the full suite of solutions together on the platform, it’s a really competitive offering for an individual.”

The app has also been reorganized to accommodate new and upcoming features.

You now have a custom dashboard that provides an overview of the customer’s account. The wallet tab allows users to manage direct deposits and connect funding sources such as bank accounts and credit and debit cards along with the ability to enroll in PayPal’s own cash, credit and debit cards. And a finance tab provides access to high-yield savings and cryptographic capabilities previously available, which allows users to buy, hold, and sell Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.

Meanwhile, the payments tab will contain much of PayPal’s traditional suite of features, including peer-to-peer payments, international remittances, charitable and non-profit donations, in addition to paying bills. and a two-way messaging feature that allows users to request payments or thank after receiving a payment, either between friends and family or between merchants and customers. This addition could bring PayPal more in line with PayPal-owned Venmo, which already offers the ability to add notes to payments and make comments.

Messaging also ties into PayPal’s new shopping hub, which is where the company is finally putting its 2019 to good use. Acquisition of Honey for $ 4 billion. Honey’s core features are now becoming part of the PayPal mobile experience, including personalized offers and exclusive rewards.

Image credits: PayPal

PayPal users will be able to explore discounts and offers within the app, then shop and transact through the app’s browser. The offers can be saved in the wallet for future use, so they can be applied if you buy later in the application or online. Customers will also be able to join a loyalty program, where they can earn rebates and PayPal purchase credit on their purchases. The company says these personalized offers will improve over time.

“We will use AI and [machine learning] capabilities to understand what types of shopping offers are most interesting to customers and continue to develop them over time. They will just get smarter and smarter as the product gets used more, ”says King. This will include using the data about offers that a customer likes and then offering them similar offers in the future.

Another novelty in the updated mobile app is the addition of PayPal collaborative fundraising platform, Generosity Network, first released late last year. The network is PayPal’s answer to GoFundMe or Facebook fundraising campaigns, offering tools that allow people to raise money for themselves, other people in need, or organizations such as small businesses or charities. The network is also now expanding to international markets with Germany and the UK to begin with, with more countries to come.

As PayPal has said, the new app is laying the groundwork for other new products in the coming quarters. The biggest initiative on its roadmap is a plan to enter the investment space, to compete with other mobile investment apps, such as Robinhood. When this comes, it will support the ability to buy stocks, fractional stocks and ETFs, PayPal says.

Later, it will also add support for paying with QR codes, like Venmo, and tools for using PayPal to save while in stores.

The updated app will launch in the US starting today as a staggered version to be completed in the next few weeks. However, PayPal Savings will not be available immediately; will be coming to the US in the “next few months,” as will some of the shopping and rewards tools.

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