PayPal launches instant money transfer feature for US users

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  • PayPal users in the United States will be able transfer funds into their bank accounts faster in the coming weeks
  • The service is not free but the payments giant will retain its free withdrawal option for those who do not want to pay the 1% fee
  • The fee will only reach $10 max, according to PayPal execs

 

PayPal customers will be able to receive their money in their bank accounts faster than before, a welcome development for those who can’t wait for one to three business days to get their hands on their money.

In some places where PayPal operates, withdrawals are often completed in less than 24 hours, but in other countries this can take up to 48 hours for funds to become available. Waiting for money can be frustrating, a TechCrunch article said on Wednesday, and many PayPal users feel that this new feature is long overdue.

An announcement on Wednesday reports that the brand has already improved its transfer time but that it will involve a very small fee once it rolls out. The service will be available in the United States in the coming weeks.

PayPal is a payments processing giant and will likely make the instant transfer feature available to all of its users, observers say, but there are no guarantees. PayPal came out with its own card in the United States years prior and it has never been made available to other countries due to differences in banking systems. Despite this, PayPal still has a strong following.

The former eBay brand is used by millions around the world so they can transfer money internationally without going to a brick and mortar bank. Apart from it being accessible, the brand also offers cheap overseas transfer rates as well as reasonable withdrawal rates for amounts lower than $200. PayPal is difficult to compete with, experts note, because it has already established that it is trustworthy. The firm is known for its excellent customer care.

This newest development is essentially an expansion of the payments processing firm’s money transfer feature, according to PayPal executives. They also noted this week that it is an improvement of its existing remittance service Venmo. The instant transfer will only take 30 minutes or less to clear and the charges won’t reach over $10. While it’s only near instant, it is much better than waiting for one to three business days when using the standard transfer feature. The standard option will be retained, executives added.

PayPal COO Bill Ready told TechCrunch on Wednesday that they will launch the feature in other countries soon. Interestingly, consumers are not as excited as PayPal. Experts note that this is due to the fact that it usually only takes overnight for their withdrawals to be deposited in their bank accounts. While the internet is not yet abuzz with the news, insiders say that this is a good addition to the withdrawal choices for the brand. People who need their money right away will find the feature quite useful. PayPal users who don’t want the transfer to be halted because of the weekend or holidays can also use the new feature to get their money instantly.

This is the perfect solution for freelancers, insiders add.

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