Soon You Will Be Able to Instantly Transfer Money Using PayPal
When you think of peer-to-peer payments, you are probably thinking of PayPal. But there is one big advantage that other services like Square Cash have over them for some time now: the ability to instantly withdraw funds. PayPal has just announced its plan to offer this feature as well.
In the announcement, the company’s executive vice president Bill Reedy said:
Today, people use PayPal’s P2P services, including Venmo and Xoom, to send and receive over $ 7 million an hour to their friends and family … PayPal users in the US will soon be able to instantly transfer money to their bank accounts via eligible debit cards linked to their PayPal account. We expect funds will usually be available in your bank account within a few minutes, although some banks may take up to 30 minutes. Our beta is now available to select PayPal users and will be available to all US PayPal users with qualifying Visa or Mastercard debit cards in the coming weeks and months.
Instant transfers will cost $ 0.25 per transaction. Translations are usually free, but they also take a couple of days, which in our fast-paced real-time world is too long.
Services like Square Cash or Zelle, which will be launching soon, already offer this benefit. Many major banks – Chase, Ally and Wells Fargo and many others – have already partnered with Zelle to offer their customers real-time peer-to-peer payments. Therefore, if you are an Ally customer, you will be able to use this service from your application or directly from the Zelle application. Banks can set their own fees using Zelle, but according to the New York Times , “but no one has announced plans to charge customers for bank-to-bank transfers.”
PayPal says the new Paypal and Venmo feature will be available to most cardholders, with the exception of some smaller organizations. You cannot participate in the beta, but if you are, you will now see the option via the mobile or web app. Venmo will follow with its own beta, and then all PayPal and Venmo US customers should have access in the coming weeks, according to PayPal .