PayPal Holdings Inc. continues to broaden its ambitions beyond payments with the planned launch of a new savings account.
Gallery: How To Protect Your Financial Information From ‘Data Hungry’ Apps You Use for Social Media, Shopping and More (GOBankingRates)
As part of an app redesign, PayPal will roll out an in-app savings account without monthly fees or minimum-balance requirements, the company announced Tuesday. The account, provided in partnership with Synchrony Bank will have a 0.40% annual percentage yield (APY). Users will be able to move money between the account and their PayPal balances.
Executives at PayPal have been vocal recently about plans to build a “super-app,” which is a term often used to reference apps like China’s WeChat and Alipay that bundle payments, financial tools and other services together in a single hub. The company already rolled out the ability for users to buy, sell and hold cryptocurrencies within the PayPal app, and Chief Executive Dan Schulman has discussed the possibility of stock-trading capabilities down the road.
Through the redesign announced Tuesday, the company intends to introduce new e-commerce tools around discounting and rewards. PayPal users will be able to see information about deals within the app and save them for future use. The company is rolling out an in-app browser for shopping, and it plans to create a loyalty program so that customers can amass rewards redeemable for cash back and PayPal shopping credit.
PayPal paid $4 billion last year to acquire Honey, a company that was known for a browser extension allowing customers to locate discounts.
The redesign will include enhancements to some existing PayPal features as well, the company said. Those using PayPal’s app for bill payments will be able to track, view and pay bills from within the app, while also setting up payment reminders or automatic payments. PayPal will also work with a bank partner to allow direct-deposit customers to receive their funds up to two days earlier.
The company is starting to roll out the new app Tuesday, though it intends to introduce the savings account and shopping tools over the coming months.