Financial tech companies say they are helping Americans outside the traditional banking system get their coronavirus-related stimulus money via direct deposit.
E-commerce payment giant PayPal is one of several companies, including Cash App, Simple and Chime, that is notifying customers that it offers routing and account numbers, which are needed to accept stimulus checks by direct deposit, according to a recent company press release.
“For the 25% of Americans outside of the financial system (FDIC Survey) digital payment [systems] like PayPal provide the ability to participate in the digital economy, while also avoiding costly fees,” Tom Hunter, a global consumer communications representative at PayPal told FOX Business. “In the current environment, we know that fast, easy, safe and secure access to stimulus payments is of high importance to people. By electing to receive the payment through PayPal, recipients can avoid going to a physical check-cashing location, or even missing a paper check if they are sheltering in place at a different address to their registered address.”
He added that customers who use PayPal to receive their deposit can spend their stimulus funds wherever PayPal is accepted immediately, withdraw to a bank account or hold the balance for future use.
The IRS rolled out a "Get My Payment" tool Wednesday, allowing individuals who are eligible for the $1,200 stimulus to enter their banking information and check the status of their payment.
Customers who have a PayPal Cash Plus account and PayPal Cash Card will be able to receive their Economic Impact Payment through direct deposit after they set up payment directions through the IRS portal. Anyone who does not have an account or debit card through PayPal can sign up and request a card online.
Account and routing numbers associated with a PayPal profile can be found under the settings section of a PayPal account.
Signing up for PayPal Cash Plus, PayPal Cash Card and PayPal Direct Deposit is free.
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