Not to be dramatic, but managing group expenses on a trip has to be one of the most annoying human experiences. You often forget who paid for what; there’s so much Math involved, and it’s even more complicated when some expenses aren’t supposed to be split evenly across the group. Thankfully, apps like Splitwise have become one of the most popular tools for managing group expenses on vacation.
PayPal announced that it’s introducing an easy and free way to collect or pitch in funds on the app. Starting today, users can set up a pool and add people to it. The pool members can use that to manage group expenses on a trip, so you and your friends don’t have to spend an hour doing all the math on the last day. The company says it should also be helpful in group gifting where everyone needs to chip in for a communal gift. The feature should also be handy for consistent shared expenses such as the rent and utilities divided among housemates.
Here’s how to set up a pool in the app. Head to the App Menu and select “Pool Money” or look for the “More Options” menu under the “Send/Request” tab to create your pool. Next, give it a title, description, target date, and optional goal amount. Then, share the pool link with your group text, email, or WhatsApp, among other options. Your group can contribute directly to the pool through your link. When the funds have been sorted, hit “Transfer” from the pool page to transfer them to your PayPal balance.
Splitwise has long been a popular app for this purpose, but it has limitations. First, it’s built on a freemium model, which means you can use its most basic functionality without paying but have to sign up for a paid plan for advanced features. It’s annoying that the “advanced features” include something as basic as adding more than three expenses to a group in a day. PayPal’s new feature is completely free of cost.
Secondly, third-party apps such as Splitwise require you to sign up for an account. PayPal’s pooling features work even for non-PayPal users. The pool organizer is the only person who has an account, but they can invite anyone to join the pool.
Also, the money in your PayPal app can be used without hitting your bank. You can make in-app purchases for a long list of participating retailers. On dedicated pooling apps, the money transferred to you is of no use until you manually move the funds to your linked bank account.
PayPal’s new feature rolls out today for the US, Germany, UK, Italy, and Spain.
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