When you and your clients or suppliers all use PayPal, transferring money between your accounts is pretty much painless and is instant, since after all this is a peer-to-peer payments business. The hassle comes when you would have to transfer the money to your bank since it sometimes takes 3-7 days for it to take effect, depending on your bank’s or card’s policies. But it looks like PayPal wants to help ease that process as they will soon be introducing instant transfers to bank accounts.
If you have an eligible debit card from MasterCard or Visa linked to your PayPal account and you’re in the US, soon you will be able to instantly transfer your money to your account without having to wait for the requisite number of days your bank tells you to wait. However, it will not be free as you will have to cough up $0.25 per transfer. You will of course have the option to just wait for the normal period or to pay that fee to have it instantly.
This is also part of PayPal’s strategy to not be a competitor to MasterCard and Visa, but instead develop partnerships with them. They officially announced that they are working together with the two major institutions to navigate the bank and card issuing ecosystem. But if you don’t want to transfer the money to your bank, it’s business as usual and you can use your funds to shop in online stores where PayPal is an accepted form of payment.
However, they did not share when exactly this will start, but it will probably be before fall when iOS 11 will have its public launch. This is because Apple will be introducing peer-to-peer payments with iMessage in their latest OS update.