PayPal are at last starting to roll out PayPal Instant Transfer to bank accounts in the US, something that thanks to UK Banks Faster Payments started to roll out in the UK as long ago as 2012 and saw the end of a £5.00 charge to withdraw money from PayPal to a UK bank account within a day.
Our US cousins aren’t quite as fortunate, seven years later they’ll be getting PayPal Instant Transfer but at a cost – 1% of the funds transferred with a $10.00 cap. For US customers, PayPal are beginning to roll out Instant Transfer to bank to consumers in the US now and expect to roll this out for businesses in the US in the coming weeks. They also say that international expansion of PayPal Instant Transfer is expected in the near future.
PayPal say that they are able to offer this functionality to customers following an expanded partnership with JPMorgan Chase. Through this partnership, PayPal is able to access the Real Time Payments network from The Clearing House, and enable Instant Transfer to bank.
“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.”
Generally, any money in your PayPal balance is immediately available to use when shopping with PayPal or sending money to friends, and there is no charge to transfer funds directly to your bank account through PayPal’s standard bank transfer functionality, which typically takes one business day. PayPal Instant Transfer is a new optional service and one that we hope might at some point become free in the US as it is in the UK.