09/01/2015 10:56 EDT | Updated 09/01/2016 05:59 EDT

PayPal Takes On Canada's Big Banks With Peer-To-Peer Payment Service

TORONTO — PayPal is introducing a new interpersonal payment service in Canada that it says will make IOUs a thing of the past.

Users who sign up for PayPal.Me can send requests for payment via text messages, email, and social media.

The company says the service will help Canadian avoid awkward talks about money and help them split restaurant bills and group gifts.

So-called peer-to-peer payments are the latest innovation from tech companies looking to chip away at the dominance of traditional financial institutions.

In the United States, companies such as Venmo and Squarecash have launched apps that allow users to exchange small amounts of money free of charge.