An article in TheVerge outlines the experience of one reporter not being able to use the faster payment option offered with Venmo P2P transactions. P2P providers have been looking to offer the same speed or nearly the same speed as Zelle, the real time payments platform from Early Warning. This is often accomplished by asking consumers to provide their debit card credentials and funneling the transaction using the card networks’ push payments capabilities which deliver transactions in a matter of minutes, if not seconds. This doesn’t always work, however. Not all debit cards are not “Fast Funds Enabled”:
Venmo’s ability to instantly transfer money to the bank account linked to your debit card is excellent. Over the last couple months, I’ve routinely moved cash over from my Venmo balance, and it usually shows up in my checking account within seconds after initiating the transfer — all for a measly fee of 25 cents.
But something seems to have gone awry with Venmo’s convenient, near-immediate money transfers. On Wednesday, the company completely removed the feature, with Venmo saying that it needed to make “a few changes.” By Thursday evening, instant transfers were restored for “some” users, but there’s currently no time frame for when they’ll return for everyone. Venmo’s traditional, next business day bank transfer option remains available and is functioning as normal.
As the P2P space evolves, we will be watching to see how important transaction speed is to consumer adoption. If you have experienced the Fast Funds Enablement issue, I would like to discuss it with you. Feel free to contact me: email@example.com
Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group
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