PayPal (NASDAQ:PYPL) users in the U.S. will soon be able to instantly transfer money to their bank accounts and have the cash show up in minutes. This is in contrast to the three to five business days it currently takes the popular payment platform to process funds. U.S. users will be able to move the money via eligible debit cards linked to their PayPal account.
A blog from Bill Ready, Chief Operating Officer at PayPal, says the beta of this system is already available to select users. All U.S. users with eligible Visa or Mastercard debit cards will be able to access the new system in the next few weeks or months.
This latest announcement is part of an overall thrust to make the system more mobile friendly with products like PayPal One Touch.
PayPal also fostered initiatives last year with Visa and Mastercard that made these instant transfers possible.
“As always, funds in your balance are immediately available to use when shopping with PayPal, and there is no charge to transfer funds directly to your bank account through our original bank transfer functionality, which typically takes one business day,” Ready writes in his post. “Our new transfer option will be available for a nominal fee of $0.25 per transfer.”
Entrepreneurs, freelancers, small business and shop owners alike have been using the payment platform to do business since 1998. It has a variety of uses like receiving money, processing debit and credit card transactions and running POS systems.
I think I started seeing this new thing from PayPal about 3 weeks ago or so. About time, right? After all, this is the electronic era!
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They’re a little slow on the uptake. You’re right.
Is this true for other countries as well or is this just in the US?
It is about time that they did this. They are lucky that they are the leading payment processor even if they have not yet implemented banking integration back then.
Wow this is good. Does this mean that we can get the money as soon as we hit withdraw. That would be amazing.
Hmm… I have been getting next business day transfers for at least a year now and for at least a year maybe two before that it was two day transfers so that 3-5 day transfer time you have in the article is way out of date. I do know that it can be slower outside the US.
Looks like they are going to be doing the same thing Square does, next day free or same day for a small fee. I have not needed to use the Square same day and probably will not need the Paypal one either but it is a nice option to have if you need your money quick. I can see it coming in handy if you get a lot of your payments on Friday as with the one business day transfers they do not hit your bank account until Monday.
As far as I know, this feature will apply to American PayPal users for now.
After all the negative reviews court cases and crazy holding money limiting people’s accounts forever for no reason things need to change fast no reason to keep holding people’s money unless it’s very high risk items and huge bank transfers
PayPal has a business debit card and it also has a debit card with the Bancorp you could do instant transfers from. I use both but the Bancorp card is $4.95 per month so I might just give that one up as I don’t see myself doing that many .25 cent transfers per month.
Ummm? Doesnt instant transfer mean immediately? The transfer takes one day. Thats not immediate.
Hi Solomon. It seems even digital wheels turn slowly.
I just saw a notice in my PayPal app that I could use this feature but I don’t understand it. I transferred my PayPal balance to my checking account — where does a credit card enter into this?? Thank you!