PayPal this week announced a new app that will add a redesigned interface, support for savings accounts, cryptocurrency trading, account reminders, direct messages and more. While the old app focused more on payments and transactions, the big update tries to bring a bit of everything, so much so that the financial services company has been calling it a “super app”.
As the company revealed in a press release, the first version of this app has been officially launched in the United States, with expansion plans for the coming months. However, there is still no date for the new app to reach the Brazilian market.
PayPal starts to compete with digital banks
The major update offers a combination of financial features, including direct deposits, bill payment, digital wallet, peer-to-peer transactions, shopping tools, a new cryptocurrency tab and even more. The company also announced its partnership with the American Synchrony Bank to create its new high-yield savings account, called PayPal Savings.
While PayPal itself does not intend to become a full-fledged bank, the new application offers a range of features that already compete directly with digital banking services and so-called “neobanks”, as it will also include support for direct physical deposits through partner institutions, bill payments and other day-to-day financial needs.
In addition to already allowing you to receive and send money, even internationally, PayPal’s new app introduces an improved bill payment feature, allowing users to track, view and pay for services from thousands of companies, including TV, internet, insurance, credit cards, telephone and others.
PayPal has allowed to pay bills in the United States through its app since the beginning of the year, but from a limited number of companies and services. Now, the company will bring support to around 17,000 collectors. In addition, users can search for them through an intelligent search system, set reminders to be notified of upcoming bills, and schedule automatic payments.
These accounts can be paid from funds in the PayPal account or from any funding source that is linked to the app. Through a partnership with Synchrony Bank, the company also launched PayPal Savings, which will offer an annual “high yield” savings account of 0.40%
App expands tools for cryptocurrencies
PayPal’s “super app” now features a custom dashboard that provides an overview of the customer’s account. In “wallet”, users manage direct deposits and link funding sources such as bank accounts and debit and credit cards. While in “finance”, customers have access to previously available cryptocurrency resources, which allow users to buy, store and sell bitcoin (BTC), ether (ETH), bitcoin cash (BCH) and litecoin (LTC).
While PayPal has been offering cryptocurrency trading since late 2020, the company has been adding services over the months. In March of this year, the company began releasing payments with digital currencies, while in April it gained integration with Coinbase, the largest digital asset brokerage in the United States.
With the “super app”, users receive an entire tab dedicated to digital currencies, bringing a better view of the account balance in each asset and facilitating payments and negotiations.
PayPal update adds messages and purchases
Another new feature in this update is the direct messages that users can send and receive within the app. PayPal exemplifies that they can be used to, for example, request payments and thank you for receipts. In addition, this communication system is available directly between individuals and between customers and merchants.
The messages are also linked to PayPal’s new shopping feature, which is where the company is using Honey, which focused on e-commerce services, acquired in 2019. The subsidiary’s key features are now becoming part of the mobile app experience PayPal, including personalized offers and exclusive rewards.
PayPal users will be able to find discounts and offers within the app and then purchase and transact directly. Coupons can be saved in the wallet for future use so they can be applied while in-app or online. There is also a loyalty system, with the possibility of earning chashback and credit for purchases from PayPal.
PayPal plans even more services
In addition to all the new features introduced with the “super app”, PayPal says the new app is laying the groundwork for more services and products to be launched in the coming months. At the moment, the biggest plan underway is to enter the investment market, trying to rival platforms like Robinhood by bringing in the ability to trade stocks and ETFs, for example.
PayPal’s great app is still gradually being rolled out in the US market and some of the features are not yet fully available for immediate use. PayPal Savings, for example, will arrive “soon”. PayPal is expected to begin expanding its “super app” to other countries as soon as it becomes fully available in the United States.