PayPal has announced a new fundraising service called Generosity Network. This new fundraising service will take on GoFundMe, part of PayPal’s expansion into financial services it’s been missing till now.
The new service allows users to set up a fundraising page and process donations through PayPal’s payment platform. Transaction fees are waived on donations made with credit and debit cards however, PayPal does intend to charge finally.
Generosity Network seems to be very easy to use just as GoFundMe. However, Generosity Network limits the length of campaigns to 30 days and caps the total amount of donations a user can collect at USD 20,000.
Paypal’s new service is accessible to individuals, businesses, and organizations, provided they abide by PayPal’s rules around misleading claims, incitement of hatred, and other guidelines. PayPal’s Generosity Network is available in the US for new campaigns and donations.
Prior to Generosity Network PayPal had a fundraising feature called Money Pools. However, Money Pools was designed for use amongst friends and family, featuring direct requests for contributions. Generosity Network will be public-facing, with campaign pages, which allows users to go into detail about the planned use for the funds you collect and provide photos. Similar to the GoFundMe, Generosity Network’s potentially wide reach opens up the prospects for fraudulent campaigns.
PayPal removes campaigns that violate its terms. However, it doesn’t list any other proactive ways to prevent fraud, relying on the community to report anything that looks suspicious.
Fundraising platforms like Generosity Network and GoFundMe have become gradually popular as the pandemic has changed the world and left many out of work or with unexpected rising medical bills. PayPal’s take on the service is that it is very simple and easy to use because PayPal itself is already popular, and people might already have their payment info in the company’s system.
Generosity Network introduces a set of new PayPal initiatives, like touch-free payment features for its partner retailers that launched themselves over the last year and trading cryptocurrencies. These new features set the company up for better competition with Square and now, Google.
Google’s also worked on the same and relaunch of Google Pay expanded the service from a digital wallet with peer-to-peer payments to an all-in-one financial tool with Mint-like tracking and eventually, banking services.