On the 12th of August 2019, Venmo, which is owned by PayPal, had announced about their ability of instant deposits to your respective bank account. Here is more knowledge regarding this matter.
Note: It is applicable only if you have a US bank account.
Venmo Helps You Deposit Money Instantly!
The feature is an optional alternative to Venmo’s standard bank transfer service; which typically takes one to three business days to process transactions. With Instant Transfer, however, funds from your Venmo account can hit your bank account within minutes.
Venmo has added the ability to transfer your balance funds into a bank account in mere seconds. The PayPal-owned peer-to-peer payments company has offered this instant deposit capability with Visa and Mastercard debit cards for some time; but opening it up to bank accounts adds more flexibility.
More Insight –
Megaforce in peer-to-peer payments
As with instant transfers to a debit card, Venmo will take 1 percent of the money for itself. That’ll be at least 25 cents no matter how much you’re depositing, but there’s also a maximum of $10. Transfers can take up to 30 minutes but are often completed in under 60 seconds in my experience. As with other transactions, Venmo reviews instant deposits and says they could be subject to delays or frozen funds.
The convenience of moving cash to a bank account instantly brings Venmo closer in line with Zelle. Also Zelle is already a megaforce in peer-to-peer payments since it’s being backed and heavily promoted by all of the largest US banks. Venmo remains its own thing; whereas Zelle is being baked right into apps from Bank of America, Chase, Citibank, and more.
Venmo started rolling out instant bank transfers yesterday and says it will be widely available “in the coming weeks”. If you don’t need the instant gratification of seeing your money pop up in your checking account balance immediately, the standard free transfer (which often deposits funds by the next business day) remains an option as always.
Also Venmo parent company PayPal has also offered instant transfers to bank accounts; as of March after first announcing its plans back in 2017.
Hence, offering an expanded fee-based Instant Transfer service to its customers could increase Venmo’s revenue; and help push the service to profitability, along with its other plans — like launching its own credit card, for instance.