Moneypool: PayPal stops collecting money

Hannover. Friends, relatives or colleagues will no longer be able to collect money via Paypal Moneypool in the future. This function will be discontinued from the end of September. Many users regret this, as the service made it so easy to collect the money needed for a joint gift among colleagues, an excursion with the soccer team or a trip.

A moneypool works like a digital collection box, in which everyone who is invited can put money. Over time, the money box fills up and the initiator can see who has deposited how much money and when and whether the savings goal, for example for the joint excursion, has already been achieved.

Grace period for existing money pools

PayPal has offered this function in Germany since 2017. But after four years it’s over: The payment service provider is hiring Moneypool, not only in Germany but worldwide. As Paypal announces on its website, As of September 30th, users will no longer be able to create new pools. For already existing, open money pools there is a grace period until October 30, 2021 at the latest, after which they will also expire.

Until November 8th, Moneypool initiators have the opportunity to add any remaining money from the collection pots to their PayPal balance. Otherwise PayPal will automatically transfer the amounts back by November 15th.

Lists are deleted

Attention is also required for PayPal customers who still need the lists for old deposits. Because this information will also be deleted on November 8th. So if you still need data about who transferred what to the donation box and when, you should take a screenshot beforehand, for example.

Among the reasons why PayPal is discontinuing the popular feature writes the company in a press release, Moneypool was introduced in 2017 “to give PayPal customers the opportunity to collect money for group gifts or special occasions.” However, the past has shown that customers often use the function to collect money for good causes. In order to make this possible better, Paypal will introduce a new service in the next few months.

Collect donations only with a business account

The problem: collecting donations requires a license or permit in different countries and is also regulated in Germany. That is why Paypal had to stop donation campaigns via Moneypools more and more often. There are many known cases where PayPal has had to freeze money or blocked accounts. This procedure was probably too uncertain and too costly for the company, which is why it is now relying on special donation services in the future.

In Germany, fundraising is already officially possible via PayPal, but charities or associations must open a business account for this. But what are all the teams, friends and colleagues who have used Moneypools privately up to now?

Looking for alternatives

For them there is a gap because there is currently no real alternative. PayPal users can still send money bilaterally. This then ends up on the recipient’s private PayPal account and not in a separate collection pot like with Moneypools. Accordingly, the recipient must pay attention to who received the money, when and for what purpose. With a soccer team and umpteen donors, that can get confusing.

Giropay offers a group function

Payments via the PayPal alternative Giropay (formerly kwitt), in which numerous banks, including the savings banks, have joined forces, work in a very similar way. With Giropay, money can also be conveniently sent to friends via the app.

Giropay also offers the option of the so-called group function. Several participants can then be asked to send a certain amount for a gift, for example. This is for a better overview, but the amounts are not collected in a separate area.

Your own account – or is it the collection box?

So what are the permanent groups that have regularly used Moneypool for their expenses? You could set up your own checking account that would be tapped for joint purchases. Of course, it is important to know who the account holder is and who has access to the account. In addition, many current accounts now incur fees if there is no regular receipt of funds. It is also worth checking whether such use is permitted in the terms and conditions.

Or you just put the good old money box back on – and collect coins and bills.

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