Visa and PayPal’s new deal
Just one day shy of Canada day, Visa and PayPal inked a deal to enable Canadian consumers to instantly access funds via Instant Transfer, a tool PayPal launched in the US earlier this year, reports Julie Muhn at finovate.com.
While the US service is powered via a partnership with JPMorgan Chase, PayPal’s Instant Transfer in Canada is powered by Visa’s push payments system, Visa Direct. The Canadian rollout of the new tool uses Visa debit card rails to move money from a customer’s PayPal account to their bank account in real time.
President of PayPal Canada Paul Parisi says that the company is focused on creating efficiencies for customers. “Instant Transfer is just one more way we are giving control and flexibility to our customers, allowing them to send and spend their money on their own terms,” he adds.
The launch of Instant Transfer is expected to offer gig economy workers faster access to their earnings, which often are paid via PayPal or Venmo. The tool will also help PayPal compete with Zelle, a bank-owned P2P money transfer tool (and PayPal competitor) which relies on ACH to move funds, a process which often takes three days to complete.
PayPal charges the same for its Instant Transfer service as it does for its debit card transfer. Users pay 1% of the transaction up to $10.
PayPal was founded in 1998 and has a market capitalisation of $138 billion.
