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Peer-to-peer payments competition has increased with the debut of PayPal links, a new way for PayPal users to send funds to others.
PayPal links enable users to create a personalized link to share that contains the amount and a short description. PayPal says they can be shared in any conversation, such as a text, a direct message in a social-media app, or via email. The link is created within the PayPal app. PayPal says PayPal links is distinguished by its ability to keep money movement within conversations where individuals already are discussing payments.
Recipients need a PayPal account to receive the funds and can do so in the PayPal app or on PayPal.com. Available now in the United States for sending, PayPal links will eventually expand to the United Kingdom, Italy, and other markets starting later this month. Links can be sent to recipients in more than 110 countries.
PayPal says each PayPal links transaction is unique and private for one-time use. Funds are instantly transferred. Payments can be funded with a PayPal balance, bank account, or credit or debit card. PayPal says there’s no cost to send or receive a PayPal links payment, though there may be international or currency-conversion fees.
Users also will have the option soon to use cryptocurrency once it is integrated into the PayPal app. Then, U.S. PayPal users will be able to send Bitcoin, Ethereum, PYUSD, and other digital currencies to PayPal and Venmo accounts. PYUSD is a PayPal stablecoin that launched in 2023.
PayPal links adds yet another consumer option for P2P payments, joining Zelle, the service from Early Warning Services LLC, Cash App from Block Inc., Apple Cash, and a variety of P2P services within social-media apps. The move comes at a time when P2P payments services continue to gain wallet share, according to a recent J.D. Power report. On average, consumers use 2.8 P2P brands, with Zelle being the leading brand and PayPal the most common secondary brand. Some 47% of P2P users have a secondary account with PayPal, according to the study. J.D. Power conducted the study from January to March and received 6,105 responses.
