Paypal launches a new free personal payment service to settle small debts in Spain and France

Paypal launches a new free personal payment service to settle small debts in Spain and France



Paypal has presented on Thursday two new personal payment features, free for users within the euro zone, which allow to pay off small debts between friends and family, as well as create a common fund to facilitate the collection of amounts for gifts or dinners.

The users with a Paypal account will be able to avoid the commissions when making small payments, one of the main barriers of the debtors when paying to friends or relatives through the online payment systems, as long as the operation does not entails a change of currency.

The company is committed to personal and collective personal payments

The company is committed to personalized and collective personal payments, while seeking to expand its user base through its application, whose main advantages, as it has underlined, are security in simple and free shipping, in addition to the possibility to claim the money owed to other users in this way.

As explained during the presentation by the general director of Paypal in Spain and Portugal , Raimundo Sala , although “money is changing” thanks to new technologies and mobile payment, “debts do not”. This is clear from the study on small debts in different generations commissioned by the company to Kantar Millward Brown.

According to the report, there is a small gap between those who claim that they owe a small amount of money and those who are their debtors (37% vs. 13%). There is also a differentiated perception between the amount owed and borrowed (36 euros versus 24). 36% of users also consider that the main obstacle when it comes to paying off debts is commissions.

The most common situations that cause small debts among Spaniards are, therefore, the acquisition of birthday gifts (64%), not having cash (62%) and lending cash at a specific time (61%). The main excuse for not returning the money is, according to 68% of the respondents, the forgetting of the debt, something that the application promises to solve.


For generations, the ‘millennials’ are the group with the smallest debts generated by the couple, with 52%, compared to 35% of generation X and 26% of baby boomers. However, family debts are the most common among all of them (67%), followed by the usual friends (65%) and the couple (40%), the average amount to be paid being 36 euros.

The baby boomers are, nevertheless, the ones who owe more money to their co-workers (48% compared to the Spanish average of 40%). The data of the study denote a proportional relationship with the purchasing power of each generation, so that the average debt of the oldest (42 euros) is 24% above that of the ‘millennials’ (32 euros).

The data agrees with the amount that most often these two groups owe: while 25% of baby boomers tend to accumulate debts between 51 and 100 euros, 44% of millennials move between 5 and 20 euros.