Shares of worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders, Paypal Holdings, Inc. (NASDAQ: PYPL), fell around 1 percent during mid-day trading after tech-giant Google announced they have created an easier way of receiving and sending money with a click of a button via email. Google wrote on its blog that on its Android Gmail application, users are now allowed to receive or request money as an email attachment. Currently with no fees it can work if the payer or payee does not have a Gmail account.
According to CNBC, the feature was already available on web browsers in some areas. But Tuesday’s new feature challenges Venmo’s dominance in mobile. Venmo, a mobile peer-to-peer payment app and social network, is one of the main drivers of growth that keeps PayPal the top person-to-person payments vendor in the U.S., according to analysis by S&P Global Market Intelligence. Venmo processed $5.6 billion in payment volume in the fourth quarter, an increase of 126 percent, the company said in an earnings report. PayPal declined to comment, citing a policy against commenting on stock price moves.