U.S. PayPal users can now invest in stock market with Acorn app

By Ed Adamczyk Contact the Author   |  Nov. 20, 2017 at 9:23 AM
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Nov. 20 (UPI) -- Starting Monday, select users of online payer PayPal in the United States will be able to make automated investments in the stock market with their purchases, due to a new partnership.

PayPal announced the deal with auto-investing service Acorns Grow.

PayPal said users will be able to link their accounts to the Acorns app, which provides multiple automated investment tools.

The service launched for some U.S. users Monday and will be available to all users early next year, the companies said.

Acorns Grow, a five-year-old automated savings and investment service, specializes in micro-investment. The company rounds up users' credit card and debit card purchases to the nearest dollar and invests the difference in stocks.

"PayPal and Acorns are both committed to helping the up-and-coming achieve their financial potential -- together, we see a future where anyone can grow wealth," said Acorns CEO Noah Kerner. "Our strategic partnership with PayPal, supports our shared mission to deliver next generation financial solutions to our customers."

Acorns Grow has 2.4 million accounts and is geared to small investors and those lacking access to bank accounts and other mainstream financial instruments. It charges one dollar per month to maintain an account.

"In the U.S., PayPal is the largest [financial technology] company focused on the underserved," said Acorns Grow CEO Noah Kerner in a statement Monday. "We're trying to make us the second largest."

PayPal has 218 million active customer accounts, and bought a minority stake in Acorn Grows last year.

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