For businesses using Online payment methods, here’s some news. PayPal has launched ‘Funds Now’, an instant payouts to businesses using PayPal.
Being rolled out 1st in the US & UK, & then globally, Funds Now will now be a standard feature to all companies using PayPal. PayPal has already rolled out a pilot of the service to 1 million customers in its test markets, & claims to have got a good response. There is no upper or lower limit on FundsNow payouts, & they will apply to any payments made via PayPal, mobile or otherwise.
PayPal said in a blog post that this new instrument will give businesses access to the money from their completed sales faster than ever (within seconds). With Funds Now, users will experience significantly fewer delays in getting access to their money, even if there are ongoing disputes being resolved.
There’s no extra fee for Funds Now. You’ll still pay the standard PayPal transaction fees, but there’s no additional charge for getting the money from your completed sales faster.
A few basic criteria to be eligible for Funds Now include having a:
- PayPal account for more than 6 months
- Strong selling record (e.g., number of successful transactions in the last 6 months, low incidence of claims or disputes)
- Legal and ethical business model (i.e., sell products & services that abide by the law)
PayPal COO Bill Ready wrote about the launch:
Small businesses are the heart and engine of our economy. They are drivers of innovation, competition, diversity, economic opportunity, job creation and the overall health of our communities. PayPal serves 19.5 million businesses, the vast majority of which are small businesses. As part of our efforts to help small businesses grow and thrive, we’re announcing the launch of Funds Now, which gives select businesses access to their completed sales within seconds by eliminating holds, delays and reserves so they can spend their funds immediately.
Image Credit: PayPal
