Payment solution provider PayPal has partnered with American bank JPMorgan Chase to launch an instant transfer option.
The new initiative aims to give US customers faster access to their money, in a market where payments and bank transfers are notoriously slow and legacy banking systems still very much in use.
Through PayPal’s service, transfers will be achievable in minutes – however, this will involve a 1& transaction fee, capped at $10. The normal transfer takes one business day to process – this will still be available at no charge.
Reportedly, the instant transfer feature will be made available through JPMorgan Chase’s access to a platform called The Clearing House.
In a blog post on the company website, COO Bill Ready commented: “Getting faster access to money is becoming more and more critical for most people, especially a the global workforce is evolving and an increase in less traditional and more entrepreneurial jobs means people have potentially less stable and more variable incomes.”
He also commented that allowing businesses to get faster access to funds would improve cashflow and allow for investment and workforce expansion.