PayPal is expanding its Instant Transfer service beyond debit cards, establishing a service for instant money movement from PayPal accounts to bank accounts.
The e-commerce payments giant is offering the service first to U.S. consumers, and expects to provide international service in the coming months. The service will be available to U.S. businesses in the coming weeks as well.
PayPal is clearly targeting the gig economy of freelancers, as well as those who need money quickly to pay bills.
“Getting faster access to money is becoming more and more critical for most people, especially as the global workforce is evolving,” Bill Ready, executive vice president and chief operating officer at PayPal, said in a Tuesday blog post. “An increase in less traditional and more entrepreneurial jobs means people have potentially less stable and more variable incomes.”
Faster access to money allows users to cover unexpected emergencies or stay on top of bill payments to avoid late fees, Ready added.
“For businesses, getting faster access to money from their sales can mean they can afford to hire more employees, purchase inventory, quickly invest back into their businesses and better manage cash flow,” he said.
Instant Transfers to bank accounts and debit cards carry a 1 percent transaction fee, capped at $10. Bank transfers occur in minutes and vary by bank, while debit card transfers take up to 30 minutes to complete.