Venmo now allows users to transfer money from the app to their banks in real time, according to CNBC. The Instant Transfer feature allows Venmo users to transfer their Venmo balance to their eligible Visa and Mastercard debit card typically within 30 minutes.
How much does it cost? It has a 1% fee (with a minimum fee of $0.25 and a maximum of $10). And it is deducted from the transfer amount for each transfer. The standard bank transfer (typically completed within 1-3 business days) will still be available for free with Venmo.
“We wanted to continue rolling out additional solutions that make it faster for people and businesses to get access to their money,” said PayPal Chief Operating Officer Bill Ready in a blog post via CNBC.
This new feature was made possible with Venmo’s partnership with J.P. Morgan Chase. With this partnership, Venmo’s parent company PayPal is able to access the Real Time Payments (RTP) network from The Clearing House and enable transfers immediately.
The instant transfer feature is rolling out for Venmo customers in the U.S. and it should be available to businesses in the coming weeks with international expansion coming in the near future.
Back in 2012, Braintree acquired Venmo for $26.2 million. And then PayPal acquired bought for $800 million in December 2013. And Venmo has grown by leaps and bounds since then. For example, PayPal saw $19 billion in payment volume through Venmo in the fourth quarter alone — which is an 80% increase year-over-year. And Venmo is on track to hit $100 billion in payment volume this year. However, Venmo has not broken even yet.