A small Aussie fintech start-up has attracted the legal ire of PayPal over the global payments giant felt its PayPool feature cut a little too close.

Chippit was founded in November 2021, and offers a digital wallet into which a group of users deposit savings, allowing them to pool their earnings.

Its PayPool feature has spread far and wide, reaching the legal desk of PayPal, who requested that Chippit withdraw a trademark application, and cease using the name, which it claims “sounds remarkably similar” to PayPal when said out loud.

Chippit filed a trademark application for ‘PayPool’ last August, which was accepted in January.

PayPal filed an opposition on March 3, and sent Chippit a cease and desist.

“It is not PayPal’s intention to disrupt your business, but PayPal must make sure its marks and similar variations of its marks, are used properly and consumers are not confused,” the legal letter reads.

Chippit CEO Eli Muse told the AFR it rejects the premise that customers would think PayPool was affiliated with PayPal, given it sits inside Chippit’s app.

Chippit’s lawyers are instead asking PayPal to compensate it for “the promotional opportunity it would be foregoing” and the costs incurred in brand development, product design and market research.