PayPal & Visa expands global partnership, powering real time access to funds
By Pavithra R
Visa and Paypal announced the extension of their global partnership, aiming to expand real-time access to funds for consumers and small businesses sending or receiving money via PayPal, Venmo, or Xoom.
The COVID-19 pandemic has drastically changed how the world used to pay and gets paid, with digital payment becoming an essential part of their day to day activities. The partnership expands PayPal’s Instant Transfer service, which leverages Visa Direct for real-time payment capabilities, to global markets, and enables fast domestic and cross-border digital payments. The global collaboration will also enable PayPal to extend global white label Visa Direct payout services through PayPal and its Hyperwallet, Braintree,and iZettle product solutions. This expansion follows the successful launch of the Instant Transfer service across North America and other markets in the Asia Pacific and Europe.
“Sending money to loved ones or giving small businesses real-time access to earnings is critical during these challenging times. By partnering with PayPal on a global scale, we are bringing together two trusted brands to provide hundreds of millions of consumers and small businesses globally with quick and secure payment options that can help them maintain financial stability,” said Jack Forestell, CPO, Visa.
Q3 2020 saw almost an 80% increase in transactions in the U.S. for person-to-person (P2P) payments using Visa Direct, Visa’s real-time push payments platform. Eligible PayPal customers can pay and get paid and transact money quickly from their PayPal, Venmo and Xoom accounts via Visa Direct to their eligible Visa cards. Real-time access to earnings has become a vital component for improving cash flow for small and microbusinesses.
According to PYMNTS/Visa’ Road to Recovery report, 76% of U.S. SMBs have reported struggling with cash flow shortages in the last few months, and 91% expressed interest in real-time settlement capabilities. Through Visa’s partnership with PayPal, eligible PayPal, Braintree, iZettle, and Hyperwallet merchants can quickly and efficiently access their money, eliminating the need for paper-based processes that can delay quick access to funds.
“Digital is quickly becoming the preferred way for people and businesses to move money. While the global pandemic has dramatically accelerated the shift to digital, we see this move to digital as a long-term change that will outlast the pandemic. We’re excited to expand our partnership with Visa to help more customers around the world get faster access to their funds, which is all the more critical during these challenging times,” said Jim Magats, SVP Omni Payments, PayPal.
Recently, Paypal launched Pay in 4; a new interest-free Buy Now Pay Later installment solution.
The companies are planning to roll out the partnership programs globally over the coming months with specific focus on expanding the reseller capabilities, new use cases, and enabling new markets around the globe.
Established since 1998, PayPal is an American company operating a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. The company has remained at the forefront of the digital payment revolution for more than 20 years.
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October 18, 2021
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