PayPal announced today they have in beta a program that allows its users to transfer PayPal funds to their bank account instantly.
Currently, most PayPal to Bank transfers can take up to 1-3 business days. By adding this new feature, funds will be available within 30 minutes at many major financial institutions.
You must have a Visa or Mastercard Debit card, and your financial institution must participate in the program.
WILL THIS APPLY TO REGULAR BANK TRANSFERS AS WELL?
For business customers, nothing changes as standard ACH transfers will continue to take 1 to 3 business days. If your business bank account has an eligible Visa or Mastercard debit card, you may be able to participate.
PayPal did not announce if there is a transfer limit, so that might become a problem with high volume sellers. For security, most debit cards have funds transfer limits imposed by financial institutions.
IS THERE A FEE FOR THIS SERVICE?
Yes, PayPal did state the instant transfer via debit card will have a 25 cent fee per transfer. This fee is still cheaper than a typical ATM withdrawal fee when using the PayPal debit card.
P2P PAYMENTS CONTINUE TO GROW
PayPal continues to innovate in P2P Mobile Payments. Of course, often mobile payments use cases state the sharing of dinner checks or reimbursing friends for expenses.
However, this feature may be useful for part time or micro businesses service oriented businesses that visit customers and take money on location. Small operators could get access to funds much faster, helping micro businesses with cash flow.