Transactions can be initiated online or through a mobile phone and then cash is made available for collection at one of MoneyGram’s thousands of sites. This represents the first phase of a rollout that will also include the ability for PayPal customers to load funds into their accounts at various MoneyGram U.S. locations by the end of the year.

It is hoped that the service will support Americans who don’t have access to a bank account and therefore use PayPal as a way to pay for products online.

Mark Lavelle, SVP, strategy and business development, PayPal, says: "This new service will provide an even greater level of flexibility, convenience and value to existing PayPal users."

A newly launched, co-branded website – www.paypal.moneygram.com – provides simple step-by-step instructions for loading and sending funds to a PayPal account at select MoneyGram locations. Consumers also can use the site to initiate a cash withdrawal from their PayPal account. The funds will be available for pick-up at a MoneyGram location, often in as little as 10 minutes.