Personal transfer without waiting for–PayPal to open an instant bank transfer service in the United States

We know that the corporate version of PayPal can pay money directly to a company’s bank account, but what if you’re an individual in need of funds?

PayPal, the parent company of P2P payment transfer app Venmo, announced in last Tuesday that PayPal had launched an instant bank transfer service for personal accounts in the United States, according to media reports.

PayPal announced a new feature that will allow users to transfer their money directly to their bank accounts, though the service will charge a small fee.

Before that, only the enterprise version of PayPal could pay money directly to the company’s bank account, and individual users could only transfer money directly to the debit card. Individual users who want to transfer PayPal funds to their bank accounts will have to wait some time.
Now, if the individual user is in urgent need of funds to use, only pay 1% of the handling fee, you can immediately transfer the money to a personal bank account through PayPal.

This is essentially an extension of the instant money transfer feature PayPal introduced in 2017, which previously allowed users to immediately transfer money to a PayPal bundled visa or mastercard debit card.

For PayPal, this new function may cause many users to transfer money out of PayPal, but it is also convenient for those without debit CARDS to expand PayPal’s customer base to some extent.

This new feature extends the potential audience to people who don’t have debit CARDS, which is useful for freelancers and other recipients of informal paychecks. For companies, while it limits the number of people who keep their money at PayPal, it may persuade people who complain that they were slow to withdraw their money to use the service.

According to PayPal officials, the immediate transfer from bank accounts was through jpmorgan chase bank to the clearing house, and later to individual accounts. An international version of the instant money transfer feature is being developed, but another transfer scheme may be required because of the currency conversion involved.

“We want to continue to roll out more solutions that will allow people and businesses to get funding faster,” said Bill Ready, Paypal’s chief operating officer, in a blog post. ”

Venmo users will get this feature in the near future.