As the pandemic fuels digital payments, Visa and PayPal have expanded ways for small to medium-sized businesses (SMBs) and consumers to move money quickly, according to a press release emailed to PYMNTS.
The global partnership will boost sending or receiving funds through PayPal, Venmo or Xoom. The collaboration extends PayPal’s Instant Transfer service which uses Visa Direct, Visa’s real-time push payments platform, for real-time payments, the companies said in the release.
It will also allow Visa Direct’s payout services through PayPal and its Braintree, Hyperwallet and iZettle solutions, according to the release. This expansion comes on the heels of the launch of the Instant Transfer service in North America and markets in Asia Pacific and Europe.
“Sending money to loved ones or giving small businesses real-time access to earnings is critical during these challenging times,” said Jack Forestell, Visa’s chief product officer, in the release. “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.”
Visa said in the release that its person-to-person (P2P) payments using Visa Direct experienced a nearly 80 percent increase in transactions in the U.S. during the third quarter, which ended June 30. Eligible PayPal customers can pay and get paid and move money quickly from their PayPal, Xoom and Venmo accounts through Visa Direct to their Visa cards.
A PYMNTS report in July found 76 percent of SMBs have experienced cash flow shortages since the pandemic began, and nine out of 10 Main Street SMBs want access to real-time settlement of funds.
Last spring, PayPal announced it would offer Instant Transfer to banks for qualified individual and business customers in the U.S. with an eye on international expansion.
In July of 2019, PayPal and Visa launched Instant Transfer in Canada for SMBs and consumers. The offering is likely to appeal to SMBs more than the average consumer, according to Paul Parisi, president of PayPal Canada.
“Typical SMBs need their money faster,” Parisi said at the time.