Online payments firm PayPal has unveiled a new tool that allows people to 'chip in' for group purchases.

Money Pools allows users to collect money for group gifts, holiday expenses and even communal costs like rent or utility bills.

According to PayPal research, 86% of Irish consumers give money for group purchases - but 32% find it difficult to collect money from family, friends or colleagues.

The survey found that relationships in the workplace are under strain due to colleagues failing to chip in for group gifts.

Some 21% of Irish consumers claim their co-workers are the hardest to get reimbursement from for group purchases like birthday or leaving gifts.

Family members can be similarly tricky, with 20% of respondents finding group purchases difficult to manage with their relatives.

The new tool is available for free to Irish customers.

PayPal vice president for Continental Europe, Middle East and Africa, Louise Phelan | Image: John Ohle Photography

Users can create their Money Pool via the PayPal app or website, and then share a short URL on social media, in messenger apps or by e-mail to invite friends, family or colleagues to the digital kitty.

There are no fees charged if the transaction is in Euros - but fees may apply if a currency conversion is involved.

Louise Phelan is vice president at PayPal: "We've all been there. You take the lead organising a group gift or buying some tickets, and then you spend weeks trying to get paid back.

"Quite often you might just give up and pay a larger share of the bill yourself. Frankly, it's a thankless task.

"We've launched Money Pools in Ireland to help banish these frustrations.

"In this day and age, we shouldn't need to chase up cash when we see people or have to navigate length bank transfers.

"It's all part of the move towards digital money and making the most of that powerful computer in your pocket - the smartphone."