PayPal announced today the introduction of a new payment feature that lets you transfer your balance from PayPal or Venmo straight to your bank account in a matter of minutes.
The new “Instant Transfer” service will cost 25 cents per transaction, and will first be available to anyone with a Visa or Mastercard debit card. The company says users should expect funds to hit their bank account in a matter of minutes, or up to half an hour depending on the bank.
While PayPal has been in the peer-to-peer money transfer game for nearly two decades, it has only recently faced competition. Its latest feature appears to be a response to P2P rivals Zelle and Square Cash, two money transfer services that let you instantly cash out balances into your bank account.
PayPal says users can still make instant payments when purchasing through PayPal, and will be able to use its original free money transfer method, which typically takes one business day to process.
The company says people send more than $7 million an hour to their friends and family using PayPal, Venmo, and Xoom.
The Instant Transfer feature is in beta for PayPal customers in the United States, and will be coming to Venmo later this summer.