PayPal Holdings Inc. added Instant Transfer capability for individuals and small businesses in Canada. The move relies on Visa Direct, a real-time push-payments service.
Announced Tuesday, the service can move money from a PayPal account to a bank account via a Visa debit card. All transfers are subject to a 1% fee, up to a maximum of $10, PayPal says.
“People want quick access to their money, especially business owners who count on money that’s coming in, not only for their livelihood but to keep growing their business,” Paul Parisi, PayPal Canada president, says in an email to Digital Transaction News. “For a business owner, finding efficiencies and saving time is of critical importance. Helping merchants has always been a priority for us here at PayPal and we’re thrilled we can now give Canadians access to their funds in minutes.”
Instant Transfer is available now for PayPal’s Canadian consumers. A group of Canadian small businesses have access to the service now with plans for greater availability in the coming months.
In March, PayPal added instant transfer for U.S. consumers. It carries the same service fee, but relies on connections to The Clearing House Payments Co. LLC to move money to bank accounts. It takes minutes to do, compared with a standard wait time of one business day.
Speed is vital to person-to-person payments. A recent Aite Group survey found that 53% of consumers were able to use funds within 30 minutes or less. Still, 25% reported waiting more than one day to receive a digital P2P payment.