PayPal Super Wallet debuts, boosting high-yield savings accounts, next step: stock and ETF trading

The PayPal CEO has finally announced the launch of the "Super App Wallet" after half a year of anticipation. This all-in-one platform integrates various financial functions including direct deposit, bill payments, digital wallet, peer-to-peer payments, cryptocurrency, shopping, and has collaborated with Synchrony Bank in the U.S. to introduce the high-yield savings account "PayPal Savings."

Back in the first quarter, PayPal CEO Dan Schulman pointed out, "No one wants to install 40 or 50 apps on their phone. We only use 8 to 10 apps per week. Everyone needs a super wallet to consolidate all financial applications, and PayPal can play that role."

It seems that PayPal is gradually fulfilling its initial promise. Schulman stated:

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We are excited to launch the first version of the Super App. This all-in-one platform is the ultimate choice for users to manage their daily finances, eliminating the complexity of managing multiple financial or shopping apps, remembering various passwords, and different reward points.

PayPal super app

After the update, the wallet option allows U.S. users to manage direct deposit of paychecks and social welfare benefits two days in advance, connect bank accounts, financial cards, and credit cards, sign up for the PayPal financial credit card, earn cashback or PayPal points rewards for shopping, and access the cryptocurrency purchase service introduced since last year.

In addition, PayPal stated that the enhanced bill payment feature allows users to track and view bills from thousands of companies, such as TV, internet, insurance, credit cards, telecommunications, and more than 17,000 other types of bills. Users can also set reminders or schedule payments, and make payments from connected accounts, not just limited to funds in the PayPal account.

High-Yield Savings Account "PayPal Savings"

In partnership with Synchrony Bank in the U.S., PayPal Savings will offer users a high-yield savings account with an annual yield of 0.4%.

PayPal mentioned that the 0.4% rate is six times higher than the national average of 0.06%, with no minimum balance requirement or monthly fees, and users can easily transfer funds between PayPal Savings and their funding accounts.

However, in the battleground of digital banks, including Chime at 0.5%, Ally at 0.5%, Varo at a maximum of 3%, and One Finance at a maximum of 3% annual interest rates, PayPal's offering pales in comparison.

Nevertheless, PayPal's future plans will continue to expand, with previous plans to support buying and selling stocks, ETFs, and other functions to compete with brokerage platforms like Robinhood.

Compared to the 0.4% annual yield of PayPal's "high-yield savings account," it's no wonder that Coinbase's lending product "Coinbase Lend" has drawn scrutiny from the SEC under the guise of securities, offering a 4% annual yield on USDC.