PayPal is enhancing some of its features which are accessible from mobile and desktop to instantly move money that they receive via the service into their bank accounts. The Instant Transfer feature is being rolled out to US consumers now, with businesses to get access in the coming weeks and international expansion set for the near future.
Bill Ready, PayPal’s EVP and COO, said in an interview that the company is working on how to extend it to other countries where banks and others are getting their ducks in a line to compete with it. Instant transfers to a bank account are coming to PayPal by way of a partnership in the U.S. it has with JPMorgan Chase, which has access to the real-time payments network built by The Clearing House, a platform established by the major banks to work on creating faster payment networks.
In that vein, transferring money out of PayPal has actually been a significant area of development for the company in recent years to better compete with the likes of Square and Stripe. Last year, it launched “Funds Now,” aimed at sellers that wanted to instantly access money from transactions without waiting the days it would usually take for a payment to properly clear and get deposited into their account. This was, however, mainly aimed at sellers on the platform.
However, it’s worth noting that PayPal Instant Transfer comes with a 1% per transaction fee capped at $10. Of course, taxes are subject to change.