PayPal aims to simplify money transfers with one-time links

This week, PayPal not only entered into a multi-year partnership with Google, but also introduced a new feature called "PayPal Links" to simplify direct payments. These one-time links can be used both to pay and to request individual amounts of money from a single third-party account and are only valid for a limited time. This service is now available in the US and will be expanded to other regions later this month. In the future, it will also be possible to transfer cryptocurrencies.

These one-time links can be created within the PayPal app. All you need to do is enter the amount and a corresponding message. The individual link created for requesting or sending the amount can then be shared with the relevant person via chat, direct message, or text message. The recipient of the one-time link completes the transaction in their own PayPal app and the money is transferred immediately. There are no PayPal fees for this money transfer, similar to uninsured PayPal transfers between friends. PayPal links expire after 10 days, but can also be withdrawn before any payments are made.

PayPal links for transferring money and cryptocurrencies

PayPal users in the United States can now use these one-time links for payments, such as when splitting restaurant bills. PayPal promises to expand the service to other markets such as the United Kingdom and Italy later this month. It remains unclear whether German-speaking countries will be included. According to its own figures, PayPal has 32 million active users in Germany alone, so the introduction of one-time links in this country is likely only a matter of time.

Previous offerings such as PayPal.me and the generation of a QR code for requesting money remain available, but are aimed more at multiple PayPal users, such as when splitting a bill for a larger group. PayPal links, on the other hand, are individual and limited to two people. In the future, this peer-to-peer service is also to be extended to cryptocurrencies, at least in the US. Then Bitcoin, Ethereum, and others can be transferred directly with PayPal links.

Partnership between PayPal and Google for e-commerce

Google is also working more closely with PayPal in the commercial sector, as both companies have announced as part of a multi-year partnership. PayPal will use Google AI to expand and improve its services and security, while Google will integrate PayPal's payment options more closely into its products and platforms. Together, the two companies want to "revolutionize e-commerce."

However, what this means for users in concrete terms remains largely unclear. The companies want to cooperate on new, AI-supported (online) shopping, and PayPal wants to use Google's cloud services. However, PayPal is likely to become the preferred payment option offered by Google in the Play Store, for example. Whether Google Pay will also be more closely linked to PayPal is currently unclear.

(fds)