You can share the payment link in an email, direct message, or text.
Move over, Zelle. Watch out, CashApp. PayPal has unveiled a new type of peer-to-peer payment method that promises to be easier and simpler than other options.
On Monday, the online payment service unveiled PayPal Links, a new way for individuals to send and receive money without incurring fees or tax forms. The new option is now available in the US to start and will expand to the UK, Italy, and other countries later in September.
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Whether you want to pay someone or request payment, PayPal Links lets you generate a personalized, one-time link that you can share via a text, direct message, or email. To do that, just launch the PayPal app for iOS or Android, select the PayPal link option, add the amount you want to pay or request, and then copy the link into your message or other conversation. You can also add a note or even an emoji.
After tapping the link, the person on the other end either sends you your requested payment or accepts the money you sent. The receiver then gets immediate access to the funds.
Since the transaction runs through the PayPal app, both the payer and payee need a PayPal account. If a link is shared with someone who doesn’t have an account, that person is prompted to create one through the PayPal app or website.
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To safeguard your security and privacy, each link is private, designed for one-time use, and generated just for a specific transaction. Unclaimed links expire after 10 days. Before the time is up, you can send the other person a reminder or even cancel the payment.
With PayPal Links, PayPal collects no transaction fee. Payers and payees are also exempt from 1099-K reporting, so you won’t receive any tax forms for the payment.
Here are a few scenarios in which PayPal Links could be a viable option.
PayPal has long offered another way to handle peer-to-peer payments without incurring transaction costs or taxable charges. With its Friends and Family option, you can send payment to or request money from another individual. To make a payment, you’re able to grab the funds from a credit card or bank account. To request money, you can send an invoice via email or text, share a link or QR code, or use Tap to Pay directly on your iPhone.
Venmo, which is owned by PayPal, also gives you the ability to transfer money with other people. Using the Venmo app, you can send money to or request money from family, friends, relatives, and other contacts.
How does PayPay Links differ from PayPal’s Friends and Family option and from Venmo, and when would you use one versus the others?
“PayPal Links is a one-time payment or request directly with another person and allows the user to specify the amount and share it quickly in their conversations without needing to search for and find a specific profile or account,” a PayPal spokesperson told ZDNET. “It removes steps and brings the transaction into conversations where users are already talking about money, costs, and purchases.”
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Finally, PayPal has one more surprise: Cryptocurrency will be included in the Links feature. People in the US will soon be able to quickly send Bitcoin, Ethereum, PYUSD, and other cryptocurrencies to PayPal, Venmo, and other supported digital wallets.
“For 25 years, PayPal has revolutionized how money moves between people. Now, we’re taking the next major step,” Diego Scotti, General Manager for Consumer Group at PayPal, said in a news release. “Whether you’re texting, messaging, or emailing, now your money follows your conversations…making it effortless to pay your friends and family, no matter where they are or what app they’re using.”
