PayPal Enables Account Withdrawals via MoneyGram, Loads Coming Soon (Aug. 6, 2013)
Aug. 6, 2013
Online payments titan PayPal continues its march into the brick-and-mortar world, striking a deal that will enable its 55 million U.S. account holders to withdraw funds at MoneyGram locations across the country. Later this month, customers in Dallas, New York and San Francisco also will be able to load money into their PayPal accounts at select MoneyGram locations, with further expansion of the account load service scheduled for later this year.
To use the new service, PayPal customers first visit a newly launched co-branded Website that provides step-by-step instructions for withdrawing funds. After logging into his PayPal account and selecting the desired MoneyGram location and amount to withdraw, the customer is given a reference number that he then brings to MoneyGram to receive the cash. There is a $4.95 fee to withdraw up to the daily limit of $200. To load funds via MoneyGram, PayPal customers must enroll in the service online, visit a MoneyGram agent and fill out a short form. There is a $4.95 fee for loading up to $200, and a $5.95 fee for loads between $200 and the cash load limit of $500.
“This new service will provide an even greater level of flexibility, convenience and value to existing PayPal users,” said Mark Lavelle, senior vice president of strategy and business development at PayPal. Giving account holders flexibility has driven many of the company’s recent moves, including last year’s in-store payment deals with Discover and more than a dozen retailers, as well as the December unveiling of its PayPal My Cash Card, which enables users to fund their accounts via cash at 30,000 retail locations in the U.S.