Bank of America Merrill Lynch just inked a deal with PayPal that will allow the bank’s U.S.-based commercial accounts to conduct payment transactions in local currencies to payees who have PayPal accounts.
The service is an alternative to traditional methods such as checks or wiring funds. Terms of the agreement with PayPal were not disclosed. The service will be of particular interest to companies doing business on online marketplaces as it offers additional payment options. It will also help companies in the U.S. retail apparel space that source products from contractors located offshore.
BofA Merrill said with the roll out of the service, its clients “can now use a payee’s e-mail address to disburse funds through PayPal, eliminating the need for the payer to gather and store an individual’s bank account information.” The bank noted that the payments are initiated through its “Global Digital Disbursements” product from the U.S. to PayPal account holders that are in the U.K., France, Germany, Italy, Mexico and the Philippines.
Hubert J.P. Jolly, global head of financing and channels for Global Transaction Services at BofA Merrill, said the PayPal deal is “another way for clients to disburse funds quickly and efficiently across borders. The agreement will help our clients access the growth in the use of digital wallets, which in many parts of the world are the preferred method of payment.”
This is not the first time the bank has partnered with PayPal. Last August, it inked a deal for Bank of America retail clients to accept PayPal in stores.
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