PayPal Unveils Next-Day Settlement…For Some
July 10, 2014
PayPal has cut settlement times for some businesses from most of a week to 24 hours, according to a post on its corporate blog. A traditional complaint from merchants that accept PayPal payments has been the long wait to transfer funds from their PayPal accounts to their bank accounts. The service is being piloted only in the U.S. and only to “eligible businesses.” PayPal did not specify the criteria for eligibility in the Next-Day Settlement program, but did indicate that all businesses that qualify to participate in the pilot already have been notified.
“With Next-Day Settlement, eligible businesses transferring money from their PayPal account to their bank account now have the ability to receive their money within 24 business hours instead of the three to four business days it used to take,” said Steven Chien, lead product manager for money management at PayPal. “We’ve heard your concerns so we’ve been working with our banking partners to optimize processes on both their end and ours so that we can make the 24-hour transfer a reality.”