PayPal has extended its partnership with Visa to leverage on Visa tools to power instant global transfers. The partnership will allow small businesses and individuals to send and receive money via the platform, Xoom and Venmo across borders through Visa Direct. The partnership will also allow faster processing of funds, curbing cash flows shortages which hit up to 76% of US businesses in the first four months of the pandemic.
The partnership comes after a recent launch of PayPal Instant Transfer Service across North America, Asia Pacific and Europe. The duo launched Instant Transfer in Canada for small businesses and consumers.
A press release from the company says that the collaboration will allow merchants to access payout services faster using PayPal services.
“Through Visa’s collaboration with PayPal, eligible PayPal, Braintree, iZettle and Hyperwallet merchants will be able to access their money quickly and efficiently, eliminating the need for paper-based processes that can delay quick access to funds,” reads the press release.
The partnership mirrors optimism in the lasting effect of the shift to digital payment and transfers fueled by the pandemic. In 2020 Q3, Visa recorded almost 80% surge in real time transactions in the U.S.
Similar optimism drove global payments provider WorldRemit to offer Africa centric remittance platform Sendwave $500 million in cash and stock in an acquisition deal set to close in 2020 Q4.