PayPal Launches New Instant Transfer to Bank, Adding to Faster Funding Mix
Improving the merchant experience is a hallmark of the payment facilitator model. Technology advances have enabled faster, more streamlined experiences for many small and micromerchants.
Continuing that trend across its user base, leading payments provider and payment facilitator PayPal has launched a new addition to its faster funding options.
On Tuesday, the company introduced Instant Transfer to bank as an option for consumers. It expects to roll it out to its business customers in the coming weeks, it said.
Faster access to funds is becoming a priority for many payments providers, particularly those who cater to small businesses. In an interview with PaymentFacilitator last year, Tedd Huff of GlobalOnePay described faster merchant funding as an area where he expects PFs to “push the envelope,” as part of their focus on improving the payments experience for their submerchant customers.
The ability to access funds from sales quickly can help businesses better manage their finances. In its announcement, PayPal pointed to a shifting workplace culture with an increase in entrepreneurship that can lead to more variable incomes.
“For businesses, getting faster access to money from their sales can mean they can afford to hire more employees, purchase inventory, quickly invest back into their businesses and better manage their cashflow,” PayPal COO Bill Ready said in a blog post.
Instant Transfer to bank is just the latest in PayPal’s funding options. It has offered an Instant Transfer to debit card feature for consumers and businesses since 2017.
And last fall, PayPal introduced Funds Now, which provided immediate access to funds for certain business customers. The Funds Now option is now available to more than 3.5 million businesses in eight countries.
“With Funds Now, we aspire to set a new expectation in payments – that immediate access to funds should be the norm rather than the exception for small businesses in good standing,” Ready said in the post.
“After seeing impressive adoption with both of these offerings, we wanted to continue rolling out additional solutions that make it faster for people and businesses to get access to their money.”
PayPal is offering the new Instant Transfer to bank capability through its partnership with J.P. Morgan Chase, which gives it access to the Real Time Payments network from The Clearing House, it said.