The move to partner with Acorns will help PayPal attract users with little knowledge of different investment options or those that find it hard to invest money traditionally. The tie-up could also benefit eBay shoppers, whose payments are processed by PayPal.
The deal could also enable PayPal to diversify its business operations and expand into providing a wide range of financial services. PayPal has been offering a variety of financial services to its customers. In the past two years, PayPal has inked deals with over 20 companies, including Facebook (FB), Baidu (BIDU), Visa (V), and Mastercard (MA), to expand its scale.
PayPal invested around $30 million in Acorns about a year ago, in parts of the United States. The company now plans to roll out the service to its entire US customer base by early 2018. The Acorns app currently boasts more than 2.3 million US users. Robo-advisors Acorns and Betterment are expected to grow their assets under investment to $385 billion by 2021, up from $220 billion in 2017, according to financial research company Cerulli Associates.
View more information: https://marketrealist.com/2017/12/can-paypal-users-invest-money-via-acorns-app/