PAYPAL ANNOUNCE INSTANT PAYMENTS
PayPal announce instant payments by adding a new feature for businesses that use its platform for their sales.Funds Nowwill let certain businesses in good standing — that means without fraud concerns or an excess of customer complaints — get instant access to funds from completed sales, even if there’s an ongoing dispute. The company says that one of the biggest complaints from small businesses has been delays in accessing funds, which are sometimes upwards of 21 days long. Funds Now eliminates that wait by getting rid of any holds, delays and reserves on that cash.
A common pain point we heard from small businesses was that across the payments industry, it’s too difficult and too slow to get access to the funds from their completed sales. In the world of payments, funding delays of seven to 21 days for small businesses have been far too common. Those funding delays hinder the ability of small businesses to invest back into their businesses, pay their bills, and serve their customers.
PayPal says that funds may still be subject to delays in some cases, like when there’s suspected account takeover, fraudulent activity or a need to comply with anti-money laundering or sanction regulations. Also, if businesses fall out of good standing, their access to Funds Now will be taken away as well.
For the 19.5 million businesses that use PayPal, Funds Now is probably good news, as is the fact that it’s free. As of now, the feature is only rolling out to the US, the UK and Australia, but PayPal says it’s working to bring Funds Now to more markets. PayPal serves 19.5 million businesses, the vast majority of which are small businesses. Funds Now has already been extended to more than one million businesses using PayPal at no extra cost.