PayPal adding an instant bank transfer option to platform

Last week Early Warning Systems announced their new Zelle payment processing system to enable nearly instantaneous transfers of funds for P2P transactions. This move seems to be a response to Apple’s steps to include better P2P features in their iMessage platform on iOS devices. Not to be outdone, PayPal announced today a new feature that will make it possible for users to move money from their PayPal account to their own bank account in mere minutes.

PayPal has already been a big player in the P2P market with products like Venmo and Xoom. The company says more than $7 million dollars move every hour in P2P transactions. A problem for many PayPal users though is that the funds are still tied up in their PayPal accounts. This means they cannot get to it in the form of cash or with a retailer who does not accept PayPal.

The new framework will enable users to move funds from their PayPal account to their linked, eligible debit cards in just a few minutes, although some transfers could take up to 30 minutes. Currently the fastest most users can move money from PayPal into their bank account is one day with some transfers taking longer.

There is a catch though for users interested in this new option. PayPal will charge a transfer fee of 25 cents per transaction. The fee can be avoided by opting for the regular bank transfer method.

PayPal says this new feature is rolling out now as a beta to “select PayPal users” with general availability coming to all U.S. PayPal customers over the next few weeks and months.

source: PayPal

About the Author: Jeff Causey

Raised in North Carolina, Jeff Causey is a licensed CPA in North Carolina. Jeff's past Android devices include an HTC EVO, a Samsung Note II, an LG G3, and a Motorola Moto X Pure Edition along with a Samsung Galaxy Tablet 10.1. He currently uses a Samsung Galaxy S8 and (very rarely) a Nexus 7 (2013). He is also using a Verizon-branded Motorola Moto Z Play Droid supplied by his job. Jeff used to have a pair of Google Glass and a Moto 360 Sport in his stable of gadgets. Unfortunately, his kids have all drunk the Apple Kool-Aid and have i-devices. Life at home often includes demonstrations of the superiority of his Android based devices. In his free time, Jeff is active an active runner usually training for his next marathon, owns a MINI Cooper, and plays Dungeons & Dragons. Jeff has three mostly grown kids and a golden retriever.