PayPal Features Instant Transfer to Bank Accounts

PayPal adds a new feature enabling their users to instantly transfer money to a bank account.

Goals: Provide customers, especially people with a debit card only, with a way to instantly access their money.
How it works. PayPal can rely on the Real Time Payments network from The Clearing House based on a partnership with JPMorgan Chase.
Business Model: PayPal charges roughly 1% per transaction, a fee capped at $10.
Payment delay: Currently, standard transfer services can require 1 to 3 business days to process. With this option, transferring money to a bank account may take just 30 minutes.
For now, this feature is meant for individual customers in the US but should be applied to corporate customers in the weeks to come. PayPal would also plan to expand it to other markets.

Instant access to transferred amounts. Instant payments are among core features now considered worldwide. In this context, PayPal intends for instant access to funds to become standard, rather than a mere exception for both individual and corporate customers.
More choice. Even if they prefer their users to store the amounts to their wallet, as other e-wallet providers do, PayPal focuses on enhancing choices and flexibility for the sake of securing customer loyalty. They also aim for additional targets, i.e.: people working in the on-demand industry.
Tough competition. By way of standing up to competition from banks and new entrants, including Square and Stripe, PayPal comes up with more services and addresses a larger number of customers. Money transfer options have been among their priorities for years.

A few months ago, PayPal launched a free solution providing merchant acceptors with instant access to the amounts they earned. PayPal aims for this new service to become as successful as Funds Now, which has already been used by over 3.5 million companies in the US, UK, Canada, Australia, France, Germany, Italy and Spain.
One of their main rivals, Stripe, launched a similar service enabling corporate customers to be sent the amounts they earned within minutes.
PayPal’s new option comes in addition to a service launched in 2017, allowing Venmo users to transfer money directly to a payment card.

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