PayPal has been making it easier for users to withdraw funds, and this week, it’s rolling out “Instant Transfer to bank” to consumers in the US, though it comes with fees. PayPal expects to roll out the feature to US businesses in the coming weeks, with international expansion expected in the near future.
“We’re able to offer this functionality to our customers following our expanded partnership with JPMorgan Chase,” according to PayPal Chief Operating Officer Bill Ready. “Through this partnership, PayPal is able to access the Real Time Payments network from The Clearing House, and enable Instant Transfer to bank.”
A PayPal spokesperson told EcommerceBytes, “This follows other initiatives we’ve recently launched, like Instant Transfer to debit card and Funds Now, all of which are focused on giving customers faster access to their money.”
TechCrunch noted, “PayPal, like other purveyors of digital wallets, may ideally wish for you to keep your funds in its own wallet to continue making transactions on its network (because this is how it makes money).” But it said PayPal has been working on features to transfer money out of PayPal in recent years in order to better compete with the likes of rivals Square and Stripe. It said it would also help PayPal attract “gig economy” workers.
You can find the full announcement on the PayPal blog. And be sure to read the fine print, including: “Instant Transfers to bank and debit cards come with a 1% per transaction fee capped at $10. Fees are subject to change.” The post also noted that beginning April 1, 2019, users must have a business PayPal, PayPal Cash or PayPal Cash Plus account to maintain and use a balance with PayPal.
Square and Stripe have No competition.