Alternative to PayPal Money Pools
If you're a PayPal Money Pools user, you will have received an email from PayPal letting you know that they are shutting the service down on 8th November 2021. Now, you might be thinking, 'how on earth am I going to collect money from my friends now!?' 😱 Don't worry! Collctiv's got you covered.
How do Money Pools work?
A money pool is simply a digital version of the old brown paper envelope that used to get passed around when someone was collecting cash for something. It's a way of simply and easily collecting money from a group of people, for a joint activity, booking or purchase. The Organiser in the group creates a money pool and then shares the payment link with the rest of the people in the group. Everyone else chips in, and once the pool has enough money in it, the Organiser can go ahead and buy or book the group item or activity. Money pools can be used to collect for anything that a group of people do together, from sports to holidays, gifts to activities - wherever we need to book or buy as a group, people are going to need to pool money to make it happen.
Why are PayPal Money Pools shutting down?
It's a fine question, and although we contacted PayPal for an answer, for some reason they didn't get back to us 🤔 🤷 However, we have a couple of thoughts, which we've popped into a whole separate blog over here.
Who are Collctiv?
We're Collctiv, a friendly bunch based in the UK 🇬🇧 We're a FinTech company, which simply means we use state-of-the-art financial technology 🤓 to make it easier for you to split payments with your friends. More specifically, we make it easier for you to collect money upfront from your group, so you don't have to pay out for people, crossing your fingers 🤞 and hoping they pay you back. Our founders are Amy Whitell (CEO) and Pete Casson (CTO), who between them have over 30 years experience building technologies and businesses that have real impact on people's lives. More importantly, Pete (a Contributor) used to owe Amy (an Organiser) money all of the time. Nowadays he has no excuse, and everything is right with the world 😌
What's the difference between a PayPal Money Pool and a Collctiv Pot?
While both things aim to be a digital whip round, there are a few key differences between how PayPal works and how we went about creating the solution for every out-of-pocket Organiser out there:
So you want me to sign up my Nan? 👵
Perhaps the most annoying thing about a PayPal Money pool is that you have to be a PayPal user to contribute to the pot. Which means that if you're doing a family whip-round for Grandad's birthday then your Nan needs to create a PayPal account. Or if Janice in Accounts is retiring, then the entire team need to be PayPal users to be able to chip in to the leaving meal. No need for any of that nonsense with Collctiv. Once you've shared the payment link with your group, people just tap to pay in, using their card, Apple or Google Pay. No account creation, no app download, no banking, no fuss = more money in your pocket. You can thank us later.
With Collctiv, you're in the driving seat: 🚗
PayPal's Money Pools are fairly restrictive in their creation process, including requiring you to put a deadline on the pool, which must be within 30 days. But what if you need your pool to be open for longer than that? With Collctiv you can set deadlines if you like, or pop a target on if you're trying to hit a certain amount. Or not. It's up to you, we're not your parents.
Pledges? We wanna see the real money! 🤑
As the creator of a PayPal Money Pool, you can't actually contribute to your own pool. Huh? Yeap, doesn't make sense to us either. You can make a pledge, a fake I.O.U. if you will. But how does that work if you're trying to collect for a regular group activity, like that Sunday 5-aside footy you play? As an Organiser paying for courts or pitches, you need to have the actual money in your pool or pot.
And - probably most importantly - Collctiv is still alive and kicking!
What do I need to know about the PayPal Money Pools shutdown?
Because we're incredibly helpful people, we've summarised the key dates you need to know about if you do have a PayPal Money Pool currently live:
- 30th September 2021: You can't create any new money pools.
- 30th October 2021: Any open money pools will expire.
- 8th November 2021: You need to have moved any money leftover in your money pools to your PayPal balance.
- 8th November 2021: Any records about who's chipped in to your money pool won't be available after this date, so make sure you've made a note of who's paid what! Otherwise things could get pretty messy...
- 15th November 2021: If you've left any dosh in your pools after the 8th November, PayPal will move it to your balance for you by the 15th November.
There's also a whole load more info over here that you might find helpful.