PayPal has introduced a new feature, which will enable customers to transfer money to their bank accounts from the app instantly.
The new Instant Transfer to bank feature is powered by a tie-up with banking group JPMorgan Chase.
Through the tie-up, PayPal gains access to The Clearing House’s real-time payments network.
The PayPal bank transfers will be initially available to consumers in the US.
Local businesses are expected to gain access to the feature in the coming weeks.
Plans are also on for a broader rollout later.
In a blog post, PayPal COO Bill Ready said: “Getting faster access to money is becoming more and more critical for most people, especially as 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.
“Faster access to your money can also mean being able to cover unexpected expenses and emergencies, staying on top of bills and avoiding late fees.
“For businesses, getting faster access to money from their sales can mean they can afford to hire more employees, purchase inventory, quickly invest back into their businesses and better manage their cashflow.”
The latest move follows the launch of Funds Now, which enables businesses to access funds from their completed sales instantly.
PayPal also enables users to move their balance to debit cards instantly through the Instant Transfer to debit card feature.
Customer adoption in both these cases was said to be “impressive”, triggering the launch of the new functionality.