We live in the digital age, and so do our finances. And PayPal is by far one of the most widely used digital wallets in the world, for all its problems: it allows users to easily receive and send payments, whether they’re just sending money to a friend or even buying something online. In the market since 1999 and quickly becoming the most widely used payment method on eBay in the early 2000s, it remains one of the most feature-rich digital wallets in the world, especially in the US. Now PayPal is launching a new version of its mobile app full of improvements.
The new app promises to be an “all-in-one” stop to manage your finances and get more with your money. While PayPal doesn’t sell itself as a bank substitute, and the new app doesn’t change that. With the updated app, PayPal works more like you would expect a bank to do as it introduces a lot of banking-like features for people discussing switching to online banks like Chime or competitors like Cash-App. Some of them are actually new, while others are renamed skills that already existed in some form.
The new app introduces PayPal Savings, a “high-yield” savings account (0.40% APY) provided by Synchrony Bank. It also offers support for receiving direct transfers up to 2 days in advance through one of PayPal’s banking partners. You will notice more options for using your PayPal balance that you will surely need when using your PayPal account to receive your paychecks.
The new app also gives you the ability to pay your bills, earn rewards, manage gift cards, pay for purchases with QR codes, access and manage balances, and much more. PayPal has been teasing about the launch of a “super app” for a while, and this new version certainly wants to be a one-stop shop for everything you need to do with your money.
We should note that PayPal has been offering banking-like features for some time. Direct deposits were already possible, especially if you had a PayPal Cash Card. And crypto trading, which is also touted as a new feature, was an existing option for some PayPal users. However, with the new version of the app, PayPal is streamlining many of these features, making them more accessible, and introducing some legitimate new ones as well. PayPal Cash and PayPal Cash Plus accounts are now called “PayPal Balance” as PayPal introduces its brand new PayPal savings account.
The company says its new app should start rolling out today, although we tried manually updating to the latest version of the PayPal app and didn’t find any changes – maybe there is still a server-side switch. PayPal savings accounts should be available in the next few months.
This probably won’t stop PayPal from holding your money indiscriminately hostage or restricting your account at times, but it does give you more options to use the money you have access to.