If things over at PayPal are going in the same direction as its other service called Venmo then instant ‘cash out’ transfers from the e-wallets to users’ debit Mastercard or Visa accounts, or their banks, have arrived. Basically, the big news is that PayPal is ready to establish and maintain alliances with Mastercard and VISA instead of its prior standoffishness and independence.
But really, would you doubt that using PayPal would be getting easier and easier? That is the general direction we’ve been heading, right? We daresay that banking institutions and services aim at making online and electronic payments just as easy (or even easier) than using paper currency. In fact, a big motivation behind PayPal’s partnerships with other services like VISA is to start cornering the market for ‘point of purchase’ sales in physical stores.
Venmo and PayPal are not just two names for similar or close services. Venmo, now with over 200 million members, is aimed at a younger audience who not only want to share small amounts of cash but they want to do it on the spot, such as accurately divvying a restaurant bill.
Venmo is like a financial social networking tool, and because of the new deal with MC/VISA it also offers immediate transfers and withdrawals of the Venmo balance back to a bank account or a supported debit card. The same benefits are coming our way from the parent company, PayPal, although its demographic and its functions are different from its successful upstart Venmo.
The only change to the PayPal service that British casino players know and love will be for the better: now they can withdraw their PayPal balance in a matter of minutes rather than having to wait a day or more for the funds to arrive.
This benefit just makes managing and thinking about how our electronic funds interact with our land-based account balances much simpler and natural. If we had to bet on the situation, we would say that PayPal will receive more of the benefits of Venmo in the area of transfers, without the latter necessarily adopting PayPal’s tricks.
You might think of the full-featured PayPal e-wallet as the company’s repository of all its clever benefits, while orbiting businesses like Venmo can concentrate on niche audiences (such as millennials) and headline with specific tools.
We don’t detect any hidden problems with using PayPal’s and Venmo’s new features, mainly the ‘instant transfer’ tool. PayPal very plainly states that using this tool will cost .25 cents or the equivalent for UK customers per transaction. But there is no need to balk just yet! There is a silver lining.
PayPal’s competitors opt for a percentage approach, and a cut like 2% plays favourites with users who transact or withdraw smaller amounts. PayPal’s .25 cent/pence fee is a blessing for those who are moving larger amounts of cash back to their home accounts — sound familiar?
Yes, this new instant cashing out tool is simply marvelous news for casino players and anyone else whose concern includes how to deal with larger sums of money. In fact, we wouldn’t be surprised if this development foreshadows and hints at a revolutionary new shift for e-wallets and emerging online financial tools: they could be claiming a mantle every bit as legitimate and widespread as traditional services and industries.
Now, we can’t guarantee that PayPal won’t renege on its low fee instant transfer service in the future by increasing the service charges (after it’s got us all hooked!). But honestly, we don’t expect that to happen, since PayPal, Venmo and their competitors are trying to provide even more value, not less.