PayPal has announced a new way to pay friends and businesses for small loans, debts and other payments, using a peer-to-peer payments service called PayPal.Me.
Using the ‘.me’ domain, any user can make their own link. The link never expires and can be used multiple times, allowing businesses and users to send it whenever they’re retrieving owed payments.
PayPal created the system after finding billions are owed in small debts across the world. Most people give up on small debts because there is no convenient way to get the person to send money, but this new system may change that.
Users can manipulate the link to only show one payment amount, or can leave it as it is and allow the payment sender to choose the amount. This could be a smart way for artists and creatives to receive donations.
Individuals that use the service will not be charged on PayPal or debit card transactions, and only a small charge will be made for credit cards. Businesses will be charged for any payments sent by individual accounts.
It is one of the first major changes since PayPal split from eBay this summer. The payments service is starting to show new ideas, as it moves its attention away from the auction service and into the realm of payments, banking and business.