PayPal Invests in Acorns, A Mobile Micro-Investing Platform
PayPal has branched out to a new form of financial management, making a minority investment in a new app called Acorns. Acorns is a “mobile-first, micro-investing platform” that allows people to build a diversified investment portfolio quickly and easily, regardless of their past financial experiences.
Acorns is an innovative program that rounds up everyday purchases to the nearest dollar and transfers the “spare change” into an online investment portfolio tailored to suit each user. For instance, if your cup of coffee cost $1.49, Acorns would put $0.51 into your investment account to grow over time. Users can also make deposits or withdrawals from their accounts at any time, so the money is very accessible. The only difference is that the spare change has a chance to become something much more if left untouched.
In the statement on their blog, PayPal said, “we feel that our mission is aligned with Acorns as it seeks to play an integral role in customers’ financial lives by linking spending, saving and investing.”
Approximately 75% of Acorns users are Millennials who have just started to build their savings. This group of people is often overlooked in the investment world because they lack the wealth to make big deposits on a regular basis. Acorns gives these people a platform to build on, while simultaneously teaching them smart money management habits.