Visa and PayPal announce additional collaboration

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Daniel Webber
Daniel Webber
Founder & CEO
Daniel is Founder and CEO of FXcompared and FXC Intelligence and has 18 years of experience in the international finance world focusing on cross-border payments, technology and the property sectors.… Read more
  • Visa and PayPal will work together by adding capacity to PayPal’s Instant Transfer service, which works off the back of the Visa Direct platform.
  • A range of PayPal brands will get boosted as a result of the new arrangement – including the card reading service iZettle.
  • It comes amid a surge in demand for the firm’s person-to-person transfer options via Visa Direct, a move attributed by PayPal in part to the COVID-19 pandemic – but also to broader trends.

Two of the biggest global names in the online money transfer field have announced an extended collaboration aiming to open up access to cash transfer services even further.

Financial services corporation Visa and international money transfers firm PayPal have worked together extensively in the past.

The new move will see the Instant Transfer service from PayPal get bolstered.

This service, which relies on the underlying framework of Visa Direct, can be used to send cash both in the sender’s home country and around the world.

The new arrangement will also see PayPal offer more Visa services on a white-labelled basis.

Some of the high-profile PayPal subsidiaries that will be affected by this move include card reading solution iZettle.

Others include Braintree and Hyperwallet.

In a press statement, the two firms emphasised the fact that transactions between individuals on the Visa Direct platform have risen massively in recent months.

One figure suggested that across Q3 2020, there had been a surge of nearly 80% in transactions of this nature.

A report partly commissioned by Visa found that over three quarters of small American firms were having recent problems with cash flow – an issue that this extended partnership may in part help to combat.

In a statement, a senior figure at PayPal explained why digital was becoming so popular when it comes to cash transfers.

Jim Magats, who serves as the senior vice president for Omni Payments at PayPal, stressed that digitalisation was attractive to both firms and individuals.

“Digital is quickly becoming the preferred way for people and businesses to move money,” he said.

He added that while the coronavirus pandemic was one fact in this change, it was far from the only one.

“While the global pandemic has dramatically accelerated the shift to digital, we see this move to digital as a long-term change that will outlast the pandemic,” he argued.

Magats finished by explaining that customers would benefit from the new move by enjoying speedier cash transfer times.

“We’re excited to expand our partnership with Visa to help more customers around the world get faster access to their funds, which is all the more critical during these challenging times,” he added.

PayPal is one of the world’s oldest digital cash transfer firms – it was first set up in 1998 and has since then become well known and recognised.

PayPal is a common choice for those looking to make cross-border payments – but does it meet your needs? Check out more information over at our online reviews page.


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