PayPal wants to help users’ money grow from little acorns into mighty oaks
PayPal has unveiled a number of new features before the holiday season hits, and one of the most interesting is its partnership with Acorns – a “simpler investing” service aimed at cash-strapped millennials that teaches them how the business works. PayPal has always claimed that it’s an ethical company – one that wants to help its users solve their money problems, rather than profit from them – and this is a great example of that ethos in action.
PayPal’s share price has appreciated by 97% year to date
SOURCE: Yahoo Finance
Acorns describes itself as the “largest and fastest growing investment app that allows people to round up their daily purchases,” which will then be invested in a low-risk, diversified, stocks portfolio. PayPal describes the new function as follows: “You can now use PayPal to fund an investment account with Acorns. Once you link your PayPal account to Acorns, you can choose to set-up a recurring or one-time investment funded from your PayPal account.”
The new feature even allows you to link your Acorns account to the PayPal app letting you “do things like check your Acorns account value, monitor your investment contributions, and manage your recurring and one-time transfers to Acorns right in the moment.”
Acorns is widely known for its entry-level investment features, and like PayPal, regards itself as a way to help cash-strapped folk without a great deal of financial education to manage their funds more responsibly. Nobel Prize-winning economist Harry Markowitz helped the company to develop its “risk dependent portfolios”.
According to PayPal, this fits in well with consumer preferences for monetary gifts this season: “For the second year in a row, money is the number one most wanted gift with more than half (52 percent) of Americans wishing they could ask for money in lieu of a traditional present.” Maybe, one day, some of those gifts will be mighty oaks.
Dominion holds PayPal in its Global Trends Ecommerce Fund.
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