PayPal opens its doors to bank transfers as it recently announced that its users could transfer money real time from the application to their bank accounts.
PayPal — the parent company of Venmo, the peer-to-peer payments app — recently unveiled its “Instant Transfer” feature, which speeds up the personal and business financial activities of its customers. In the past, users need to wait for one business day or more to see their money deposited in their bank.
This innovation is a result of a partnership between PayPal and JP Morgan Chase which allows the online payments company to transfer money quickly by accessing The Clearing House’s Real Time Payments network.
PayPal customers in the U.S. can already enjoy this feature while it would be available to businesses worldwide in coming weeks with for the feature’s international expansion.
According to Bill Ready, PayPal’s chief operating officer, this move addresses the users’ need for instant transfer function. Before the launch of this feature, money access, “in many ways,” has become slower even as the technology has become faster, Ready said.
With “Instant Transfer,” PayPal and Venmo users can now spend the money right away when they get paid.
Meanwhile, PayPal is grabbing the opportunity to take part in the booming e-commerce market in Latin America by investing $750 million into MercadoLibre, an Argentina-based online marketplace and financial services hub that serves 18 countries in the region.
Together with investment firm Dragoneer, which also poured $100 million, the online payment company’s investment effort is part of $1.8 billion equity offering to grow MercadoLibre’s operations.
