This morning, PayPal made the announcement that going forward, the process of transferring money from its platform, Venmo, and users’ bank account will be expedited.
The new “instant transfer” service will only set you back just $0.25 per transactions and will deliver the funds to your bank account in a matter of minutes. The instant transfer is only available in supported MasterCard and Visa debit cards.
Previously, it would take as long as an entire day to transfer funds from your PayPal or Venmo account to your bank account. PayPal’s move to provide instant transfer service to bank accounts is primarily driven by the fear of losing its market share to the new kids on the block like Square Cash and Zelle.
Square Cash, a fairly new player in the market – compared to the over two decades run PayPal has had – allows users to cash out instantly to their bank accounts. A feature that has seen the new player eat into PayPal’s market share ever since its launch.
Zelle is a real-time money transfer service that gives Venmo a fierce run for its market share. Especially since it was founded by a consortium of over 30 U.S. banks, and it also provides users the ability to instantly send cash from their digital wallet to their bank accounts.
It is no secret the move by PayPal to effect instant transfer to a bank account is a reactionary and defensive move. Aimed at protecting its market share and hopefully win over users who seem to be slowly warming up to its competitors who facilitate instant cash transfer to bank accounts.