Paypal launches GoFundMe competitor, Generosity Network
In a press release dated November 19, PayPal has announced Generosity Network, a peer-to-peer crowdfunding service that’s taking aim at crowdfunding giant GoFundMe.
As Otkay Dogramaci, Vice President of Giving, PayPal, stated in the press release, PayPal has seen an “outpouring generosity” from the PayPal community given the year riddled with challenges brought about by the pandemic.
“The Generosity Network was designed to provide an accessible, easy and secure way for our customers to raise money on behalf of causes, and connect them with millions of PayPal customers who can offer their support this holiday season and beyond,” he added.
Under the Generosity Network, PayPal users will be able to create fundraising campaigns for their peers which can last for 30-days which can raise up to $20,000. In comparison, GoFundMe apparently has no deadline and limits when it comes to donations. In fact, Taylor Swift of all people, actually made PayPal increase their donation transaction limit to $50,000 from the previous $15,000.
This is not the first charitable program that PayPal has on its platform. Although far from Generosity Network, PayPal Giving allows customers to directly donate online to known charities. Generosity Network would allow a similar service but for crowdfunding instead.
Crowdfunding campaigns in the Generosity Network would be accessible throughout PayPal’s platform to garner traction and gain donations. These donations are directly deposited into the campaign’s account.
At launch, Generosity Network will waive traditional fees for credit card and debit card donations temporarily while currency conversion and cross-border feels will still apply. According to reports, Generosity Network will include these fees in the near future. Currently, Generosity Network will be available for PayPal consumers in the U.S. alone.
Another charitable program that PayPal has launched is “PayPal: Money Pool,” which is basically a privatized version of the Generosity Network which would allow users to “pool money” from members of the family or friends and would allow them to make direct contributions.
“From collecting money for grocery deliveries to high-risk populations to fundraising campaigns in support of teachers and frontline workers, we’ve seen an outpouring of generosity from the PayPal community using our platform to help one another during this unprecedented year,” says Dogramaci.
With the PayPal community at 346 million strong globally as of this year, PayPal may have a strong case to compete against fundraising giants GoFundMe and even Facebook Fundraisers with the launch of the Generosity Network, especially in these trying times. The launch of the Generosity Network may help mend the financial burdens of over 65 million Americans who have filed for unemployment as an impact of COVID-19.
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