PayPal is a better alternative to any kind of money transfer across goods to purchase an online money transfer. However, competition among the money-transfer platforms is growing as new startups including Stripe and Square are entering into the same business.
Now, PayPal is launching Instant Transfer, in which money received by PayPal could move to the bank accounts directly. Currently, this service is available to the users in the US and will extend to other businesses in the coming weeks.
Bill Ready, COO of PayPal said that the company is working on extending these features to other countries. Instant transfer to bank account by PayPal is available in the US. It will offer this feature to other countries by partnering with major banks. Additionally, they are togetherly working on creating faster payment networks.
Digital wallets offer comfort for keeping funds in its wallet or transferring it to the bank account. But, still, they are working to bring more options and flexibility while using these platforms.
The instant transfer by PayPal will cost about 1% of the total transaction amount and up to US$10.
Will these features boost consumers for the platform?
Until launch of the service, PayPal had 267 million active account users and 21 million merchant account users. The merchant account users could transfer to bank accounts, but it required days for completing the transactions.
He highlighted specific part where workers get the benefit of this platform. He claimed that it would be beneficial for gig economy workers who get paid after delivery rather than a fixed salary. Having an effective way of transferring money to a bank account are more likely to use PayPal for accepting payments. Growing number of these people will benefit for wider transaction scale.