PayPal is partnering up with J.P. Morgan Chase (NYSE: JPM) to launch the new ‘Instant Transfer to bank’ service, the bank confirmed today. Through this partnership, PayPal will be able to access the JP Morgan’s Real Time Payments (RTP) network from The Clearing House, and enable Instant Transfer to bank.
After initiating a transfer on the RTP network from a PayPal account to their account (s) with a U.S. bank that is a part of the RTP network, a PayPal user will be able to access their funds within seconds. With Real-Time Payments, processing is instantaneous and enables immediate availability of those funds any day of the week, explains a press release by the JP Morgan.
The company quoted Roberta Burke, JP Morgan Treasury Services Corporate Sales for TMT, saying, “PayPal recognized J.P. Morgan’s early investment in Real-Time Payments and through conversations, saw the advanced stage we were at and our vision for the future.”
In April 2020, JP Morgan, who recently announced JPM Coin cryptocurrency, is expected to be the only bank in the world with RTP capabilities in three major currencies and markets: USD, GBP and EUR. “Our market-leading position in this space helped to secure our offering with PayPal for U.S. Real-Time Payments expanding upon our existing relationship,” says Burke of JP Morgan Chase.
The company also noted that processing volume has soared in the past few months and is expected that the number of daily transactions will reach 30,000 by the end of the first half of 2020, with PayPal being one of the major contributors to this growth.
“In the fourth quarter of 2018, we were processing six Real-Time Payments per day.Today, we are processing over 2,000 payments per day; in April, we’ll reach 30,000 per day and by the end of the first half of 2020, it will be more than one million per month,” noted Art Brieske, head of Faster Payments for J.P. Morgan Treasury Services.
According to PayPal, “Instant Transfer to bank” service will first be available in the U.S only. “We’re beginning to roll out Instant Transfer to bank to consumers in the U.S. now and we expect to roll this out for businesses in the U.S. in the coming weeks, with international expansion expected in the near future,” payment service provider explained.
One could argue that the likes of big tech companies and banking institutions have had a while to sit and ponder cryptos and will now start introducing the next generation of fintech that will provide the originally touted benefits of cryptocurrency and beyond.