For many users, PayPal has always lived in the digital realm. Funds are usually deposited and withdrawn through a bank transfer. But, as the company continues to grow and innovate, PayPal bolsters its presence in the physical world. PayPal announced a new partnership with MoneyGram that will allow users to deposit and withdraw funds at MoneyGram locations.
Starting early next year, the company will pilot the service before rolling it out nationwide. PayPal users will be able to access their funds through more than 280,000 MoneyGram locations worldwide by providing their email or mobile number.
“This latest initiative with MoneyGram is another example of how we’re enabling our digital wallet to work across multiple platforms and devices, online and offline, in order to offer consumers more control, flexibility and functionality when interacting with their money,” said Dan Schatt, head of financial innovations at PayPal, in a blog post.
Last year, in collaboration with Coinstar, PayPal began piloting a new way for users to deposit and withdraw funds at Coinstar kiosks. PayPal users just enter their email or mobile number to fund their accounts with cash or coins ($3 transaction fee and 5.9 percent fee, respectively) and withdraw cash ($3 transaction fee).
PayPal customers with Premier or Business accounts can also sign up for a debit card, which can be used to make purchases and withdraw funds ($1 ATM withdrawal fee).
Consumer fees for transactions at MoneyGram are not currently being disclosed, Schatt said in an emailed statement.
As PayPal expands its services through companies that have a large physical presence, the company creates a network that mimics that of big banks. One of the perks of banking with a large financial institution is the easy access to a branch or ATM. PayPal’s partnerships can offer a similar benefit without establishing costly physical locations.