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PayPal shares slide after Google announces rival email feature

Anita Balakrishnan

PayPal (PYPL) shares dipped about 1 percent on Tuesday after Google (GOOGL) said it would make it easier to send and receive money via email.

The Gmail app on Android now lets U.S. users receive or request money as an email attachment, Google said in a blog post. It has no fees, and can work even if the payor or payee doesn't have a Gmail account, according to Google.

The feature was already available on web browsers in some areas. But Tuesday's new feature challenges the dominance of PayPal's Venmo 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.