According to a recent PayPal study titled “PayPal’s Money Habits Study,” the average respondent was owed $450 by friends and family, totaling $51 billion.
The online survey on consumer behavior and attitude toward money and payment options was conducted in the US, Canada, Germany and Australia. Over 4,000 respondents aged 18-55 participated in the survey.
Globally, many people hate owing each other money; relationships can suffer as a result of IOUs. Almost one-third of the respondents had lost a relationship or had a relationship ruined due to debt owed. The reason behind it—people feel awkward about asking friends and family to pay up for their share of the expense.
To avoid such awkward situations, P2P lending platforms are becoming the preferred way for people to get their money back. Peer-to-peer lending platforms like PayPal.me send notifications to the borrower that they owe the lender money.
PayPal launched its new P2P service called PayPal.Me in an attempt to make person-to-person payments simpler and social. PayPal.Me allows users to create their personal link (paypal.me/stevesbank) and anyone with that link can send or request money from the user. Once you create your own personal link, PayPal will automatically connect it with your PayPal account.
With this new service, it seems like the company is trying to grab an opportunity in the P2P lending market.
PayPal is a truly global payments platform that is available to people in 203 markets, allowing customers to get paid in more than 100 currencies, withdraw funds to their bank accounts in 57 currencies and hold balances in their PayPal accounts in 26 currencies. For more information on PayPal, click here.