PayPal is very popular when it comes to people that work for gigs and since digital money is becoming more popular than cash or checks it is the best solution for them. Roughly a third of the workers in the U.S. are part time or work on a project-based employment. Those gig workers lean more towards PayPal because they can get paid faster but it is still not nearly as fast as people would like it to be. Most people that work on a gig basis said they would work even more if they got paid faster. And with PayPal’s successful Instant Transfer to debit card, which launched in 2018 where people could put their PayPal funds on a debit card, it makes sense why people like PayPal so much.
As of March 12th 2019, PayPal is offering Instant Transfer to bank for qualified individuals and business customers in the U.S. and possibly international expansion later down the road. The Instant Transfer function is made possible because of the company’s partnership with J.P. Morgan Chase. This partnership lets PayPal access the real time payment network linked to The Clearing House.
With Instant Transfer to Bank people will see how important this could be to them. Whether its covering bills, emergencies, or it’s your turn to go on the next beer run. With this new offering it can expand to small or medium sized businesses and help small sized businesses even more since they don’t have one or two sources of income they have multiple. A business owner can now easily go and buy supplies and pay their employees on time the same day without having to wait. Same day settlements is an option but only during normal business hours and don’t expect anything to be open during holidays but with Instant Transfer you can access funds anytime of the day.
J.P. Morgan will roll out Instant Transfer to major banks first such as: Bank of America, Citi, Wells Fargo, and Chase, but PayPal will be the first to implement the function. COO Bill Ready says “The infrastructure has been there for a little while, but there has not been a major use case until recently.”