PayPal plans immediate funding as standard for small merchants
PayPal's new Funds Now service should be the norm, according to the company, which will provide immediate funds access to small businesses in good standing.
Businesses that qualify for Funds Now have six months or more business account sales history with PayPal; have a strong selling history and a track record of successful PayPal transactions; and have confirmed account information with PayPal. The free Funds Now service has already been extended to one million businesses using PayPal.
paFunds from sales that occur from any marketplace, website, PayPal Here or from invoicing through PayPal are eligible for immediate transfer. The merchant has the option to transfer the money to another account, or begin spending it from the PayPal account.
PayPal is launching Funds Now to businesses across the U.S., U.K. and Australia and says it expects to expand into more markets in the near future, according to a company blog post.
"Over the past year, we've been meeting with many small businesses around the country to better understand their needs," Bill Ready, chief operating officer and executive vice president at PayPal, said in the blog post. "A common pain point we heard from small businesses was that across the payments industry, it’s too difficult and too slow to get access to the funds from their completed sales."
In the world of payments, funding delays of seven to 21 days for small businesses have been far too common, Ready added. "Those funding delays hinder the ability of small businesses to invest back into their businesses, pay their bills, and serve their customers," he said.