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The stimulus payments could help digital payment firms like PayPal, as the first round proved successful by boosting platform user count. The payments giant also said that PayPal or Venmo customers who used its Direct Deposit feature for the first stimulus round will automatically receive their next stimulus payment through the same service, provided they qualify for the payment.
The second round of payments comes at an opportune time, considering consumer spending has begun to decline. US spending decreased 0.4% on a monthly basis in November, signaling the first drop in overall spending in seven months, according to recent data from the US Commerce Department. The drop in spending might result from the phasing out of federal aid from earlier in the year as well as increased coronavirus cases and subsequent restrictions.
Source: News Formal (newsformal.com)