B2B payments platform Melio added real-time payments to its suite of offerings. The new service lets payors deliver funds instantly to vendors, according to a Wednesday (Dec. 13) press release emailed to PYMNTS. It also lets businesses hold onto funds for as long as possible, and not have to pay days in advance of an […]
The post Melio Adds Real-Time Payments to B2B Platform first appeared on PYMNTS.com.
B2B payments platform Melio added real-time payments to its suite of offerings.
The new service lets payors deliver funds instantly to vendors, according to a Wednesday (Dec. 13) press release emailed to PYMNTS. It also lets businesses hold onto funds for as long as possible, and not have to pay days in advance of an invoice due date to make sure payments get there on time.
“While consumers have taken advantage of real-time payments for years, vendors and their small business customers are now able to reap the benefits of this innovative technology,” Melio CEO and Co-founder Matan Bar said in the release. “Real-time payments are a game-changer for small businesses as it allows payors to keep cash longer and be on time even when paying last minute.”
Added Melio President and Chief Operating Officer Tomer Barel: “Vendors and small businesses will not just be able to access this capability directly through our platform, they will also have access to real-time payments through the platforms of our partners who have embedded our technology.”
Compared to ACH transfers, which can take three business days to process, Melio’s real-time payments feature, backed by J.P. Morgan Payments, can process payments within seconds, even on weekends and bank holidays, per the release.
Melio said in the release that it supports both The Clearing House’s RTP Network as well as the Federal Reserve’s FedNow® Service.
Real-time payments can now support roughly 60% to 70% of domestic B2B transactions in the United States, with more banks expected to embrace real-time payments thanks to FedNow, according to the release.
Real-time payments can be a lifeline for small- to medium-sized businesses (SMBs), many of which are struggling to find financing.
“Payments are one of SMBs’ most widely reported struggles, whether involving purchases sold to customers, transactions with vendors or expenses such as rent or payroll,” PYMNTS wrote in June. “Real-time payments could provide a critical lifeline for businesses when receiving from customers and sending to vendors and creditors.”
The launch of Melio’s real-time payments offering follows the August debut of the company’s Pay Over Time product. The solution lets SMBs pay vendors and business bills in monthly installments, while their suppliers are still paid on time and in full. The tool also offers eligible SMBs instant access to capital of up to $50,000 through their Melio accounts.
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The post Melio Adds Real-Time Payments to B2B Platform first appeared on PYMNTS.com.
