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.
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. As TechCrunch points out, 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.