PayPal is teaming up with global money transfer agency MoneyGram to add another option for loading, moving and accessing cash from PayPal digital wallets.
Essentially, PayPal customers will be able to put cash in and take funds out of a PayPal account from select MoneyGram locations worldwide.
MoneyGram operates in more than 196 countries with approximately 284,000 locations worldwide. While PayPal's 117 million customers and counting won't be able to access their accounts at all of these locations, they will be able to at many of them.
Thus, this extends access to money in PayPal accounts from the physical world considerably.
Dan Schatt, head of Financial Innovations at PayPal, explained in a blog post on Monday that this also means users without a credit card or bank account will also have another option for turning cash into payments across any channel.
This could be a consumer who shops online using pre-paid cards that will instead have the ability to put their cash directly into a PayPal account and use it anywhere PayPal is accepted. It will provide consumers and businesses with an incredibly fast translation of cash to commerce and the service will be quick, secure and very user-friendly; a mobile number or email will be all a user needs.
The PayPal-MoneyGram service is expected to be start rolling out in pilot mode early next year in the United States, followed by a wider launch later. That time frame hasn't been revealed publicly yet.