PayPal lets users instantly transfer funds to bank accounts
PayPal is rolling out an Instant Transfer feature in the US, allowing consumers, and soon businesses, to instantly move money that they receive via the service into their bank accounts. Instant Transfers 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. The move is part of PayPal's effort to make itself more attractive to new sectors, including gig economy workers - who are increasingly choosing the firm to get paid - by helping them get their hands on their money as quickly as possible.
The firm already offers an Instant Transfer to debit card option and has also targeted businesses with a Funds Now option that gives them access to money from completed sales within seconds. Says COO Bil Ready in a blog: "Getting faster access to money is becoming more and more critical for most people, especially as the global workforce is evolving and an increase in less traditional and more entrepreneurial jobs means people have potentially less stable and more variable incomes."
"Faster access to your money can also mean being able to cover unexpected expenses and emergencies, staying on top of bills and avoiding late fees. 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." The new feature is made possible thanks to a partnership with JPMorgan Chase that gives PayPal access to The Clearing House's real time payments network.