The COVID-19 pandemic continues to put tremendous pressure on people and businesses, and in an effort to address some of these problems, today PayPal and Visa announced the expansion of a service that brings money into people's hands. faster than before. It's called Instant Transfer and is a service where PayPal allows individuals and businesses to quickly access funds they transfer to bank accounts (reducing the waiting time from days to seconds).
This will mean that consumers and businesses worldwide sending or receiving money via PayPal, Venmo or Xoom, or through Braintree, Hyperwallet and iZettle (all part of PayPal), will now be able to use the Instant Transfer option. PayPal services use Visa Direct to do this payments.
The service is an evolution and expansion of Instant Transfers, launched by PayPal in March 2019.
Stripe and Square, as well as other payment providers, have also launched products over the years to reduce the waiting time normally required to transfer money from sender to recipient.
But in recent months, this feature has become the focus. COVID-19 has brought them businesses and people faced with very strange συνθήκες, with many seeing a reduction in the money circulating in market. All this means that everyone wants the time that "holds" a money transfer to be reduced as much as possible.
PayPal said in a recent survey it found that 76% of small businesses in the US reported struggling with a lack of cash flows and 91% said real-time settlement could help address some of these issues.