PayPal, the electronic payments firm, is entering the robo-advisory business. It has announced a new arrangement with Acorns, a robo-advisory firm focused on small investors, that essentially creates a two-way street for customers with accounts at both firms.
Customers will be able to transfer funds between the two accounts, including contributions and withdrawals, and they can use the PayPal website and mobile app to open an Acorns account and then monitor their investments.
The new feature is currently available to select U.S. PayPal customers and will be offered to all its U.S. customers by early next year.
“PayPal and Acorns are both committed to helping the up-and-coming achieve their financial potential,” said Acorns CEO Noah Kerner in a statement. “Our strategic partnership with PayPal, support our shared mission to deliver next-generation financial solutions to our customers.”
PayPal is also mentioned among the many tech firms that could potentially step into the asset management business.