Venmo launches instant transfers to bank accounts
Venmo has announced support for instant transfers to U.S. bank accounts, in which funds from your Venmo account can hit your bank account within minutes.
Venmo has been offering Instant Transfers to eligible Visa and Mastercard debit cards for a small fee since January 2018. At launch, the fee was a flat $0.25, but this has since been bumped up to 1% of the transferred amount last October. Now, the minimum fee is $0.25 and the maximum fee is $10. However, users are still able to choose the standard transfer option if they don’t want to pay for an instant payment.
While transferring to a debit card is useful for gaining quick access to cash stored in Vemno, not everyone carries a debit card nor do they always want their funds to go to that card. Bank transfers can also aid small business customers or gig economy workers by moving their Venmo cash to their main account for paying bills, rent and other automatically debited transactions.
Venmo is facing increasing competition from rivals, including Square’s Cash App and the bank-operated Venmo challenger, Zelle. However, with more than 40 million active accounts, Venmo has more users than some of the U.S.’s bigger banks.
Venmo parent company PayPal has also offered instant transfers to bank accounts as of March after first announcing its plans back in 2017.