PayPal extends Venmo Instant Transfers solution to all

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  • Venmo speeds up release of funds to 30 seconds
  • Instant Transfer subject to $0.25 fee

Aussies needing to make fast international money transfers know how frustrating it is if online payments systems take a long time to release funds. PayPal, hitherto as guilty of this problem as many other money transfers organisations, is mending its ways: instead of taking days for cash to move from PayPal to a bank account, it has a nifty new solution that looks set to consign this problem to history.

PayPal-owned Venmo is the game changer here. Last summer, Venmo unveiled an instant transfer feature (perhaps somewhat unimaginatively called “Instant Transfer”) that would allow customers to almost immediately move cash to a debit card for a $0.25 fee. The feature slashes the transfer time from days to seconds (30 seconds, to be exact). And this week PayPal announced that it will be rolled out to everyone.

The feature will prove especially useful on those occasions when customers need the money at their disposal pronto to purchase something fast, particularly before a national holiday break or a Sunday, when delays are typically longer because banks don’t process any withdrawals on these days. Customers just have to accept it and wait until the next regular business day.

Venmo’s Instant Transfer, we’re led to understand, only works with Visa and Mastercard-branded systems. But users will certainly have more options as far as gaining access to their own money is concerned. Observers are already predicting that the Venmo option will transform PayPal from a mere payments system to a facilitation gateway for digital banking and international money transfers.

Critics have seized on the $0.25 fixed transfer fee, which stands between a rapid money transfer and a delay of days. The question they’re posing is: “Why should PayPal force us to pay anything simply to gain access to our own money a bit faster?”

The strong likelihood, however, is that customers will definitely be willing to pay – PayPal is a commercial operation, after all, not a charity.

Nigel Frith
Nigel Frith
Global General Manager
Daniel is Founder and CEO at FXcompared and has numerous years of experience in the international finance world, especially within the media, technology and property sectors. Daniel is passionate… Read more

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