In today’s world, most transactions like transferring money from one account to another are done online. But these transactions are not done instantly. To overcome this drawback, PayPal has launched a new feature that allows users to transfer money immediately to their respective bank accounts. But, there is one limitation users having Visa and Mastercard debit cards can only make use of this feature.
PayPal Chief Operating Officer Bill Ready, in a blog post, said that “We expect that funds will typically be available in your bank account in a matter of minutes, although some banks may take up to 30 minutes. He also stated, “Our beta of this is now available to select PayPal users and will be made available to all U.S. PayPal users with eligible Visa or Mastercard debit cards over the coming weeks and months.”
It was necessary for PayPal to make such a move in order to survive in this competitive world. PayPal also faces a formidable competitor in Apple Pay now that P2P payments will become a part of iOS 11. The consortium of U.S Banks is also planning to launch Zelle, which also allows customers to transfer money in an instant. The other firm named, Square Cash has also started the instant payment service for a certain amount of time, thereby charging 1 percent of the transaction or for free if users wait a business day. PayPal’s instant transfers will charge a flat fee of 25 cents.
According to Ready’s post, PayPal has been offering P2P payments since 1998, when owners of Palm Pilots could beam money to each other. Apple which has partnered with Visa and Mastercard, could distract other users depending on how well its Apple Pay P2P offering is received. There are 375 million users who have gained access to Pay, of which only 12 million are using payment app every month. This access is provided by Apple’s iTunes store.