PayPal has announced a new function called PayPal Funds Now. It’s a feature for selected merchants that use the payments service and allows them to get instant access to the cash in their PayPal account. They say that the key advantage of the feature gives select businesses access to their completed sales within seconds by eliminating holds, delays and reserves so they can spend their funds immediately.
In the world of payments, funding delays of seven to 21 days for small businesses have been far too common. Those funding delays hinder the ability of small businesses to invest back into their businesses, pay their bills, and serve their customers. 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. In fact, Funds Now has already been extended to more than one million businesses using PayPal at no extra cost.
As it stands at the moment PayPal Funds Now is rolling out to select businesses across the USA, UK and Australia. But it will expand to more businesses in more markets soon. There has been no information provided about the criteria for being offered the function.
For any merchant using PayPal holds on funds, usually related to suspected fraud or money laundering are a serious inconvenience. And they are especially egregious when you consider that you may have an extraordinarily long and flawless history with PayPal. This new feature is a way of showing an element of trust in experienced merchants with a track record.
And there can be little doubt there is an implicit swipe in eBay’s direction as more details of the functionality of their Adyen-powered eBay payments platform emerge. And, as has been seen on Tamebay, disbursements in that system will only be available once daily.