Cross River Bank has formed a partnership with payments solution provider MassPay. The collaboration, announced Tuesday (July 9), is designed to expand access to domestic instant payments, particularly in sectors like the gig economy and others facing real-time payment complexities. “The rise of independent contractors, gig and creator economies and online marketplaces has revolutionized the way people work and transact, creating […]
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Cross River Bank has formed a partnership with payments solution provider MassPay.
The collaboration, announced Tuesday (July 9), is designed to expand access to domestic instant payments, particularly in sectors like the gig economy and others facing real-time payment complexities.
“The rise of independent contractors, gig and creator economies and online marketplaces has revolutionized the way people work and transact, creating a growing demand for efficient, reliable, and instant payment solutions,” the companies said in a news release.
“Together, Cross River and MassPay will address this demand by ensuring seamless transactions, enhancing the financial experience for both businesses and individuals.”
According to the release, Cross River’s technological capabilities, especially the ability to route instant payments through a singular API, combines network interoperability with intelligent routing, thus making sure that payments are processed quickly and reliably.
“The collaboration offers a streamlined solution that will increase optionality in instant payment offerings, provide users with faster access to funds and reduce the waiting time for both acquiring payments and receiving payouts,” the companies said.
PYMNTS examined the rise of instant PYMNTS in the transportation sector recently in a conversation with Cheryl Gurz, vice president, RTP product development at The Clearing House (TCH).
“For these businesses, instant payments are really about precision,” Gurz said, explaining that across the evolving landscape of the transportation industry, the rise of instant payment systems marks a substantial shift in how transactions are being carried out, particularly among small and medium-sized businesses (SMBs).
Gurz said the decentralized nature of the transportation industry inherently results in uncertainty around cash flows. Many small operators have an easier time managing their finances with checks in spite of the inherent delays, because they give them a tangible way to control the timing of disbursements without worrying about the overdrafts associated with poorly timed electronic payments.
Instant payments, facilitated by TCH’s real-time payments (RTP) network, provide a solution to these timing and cash flow challenges. Unlike traditional methods, the RTP network is operational around the clock and year-round, allowing businesses to make payments at any time to make sure they align perfectly with their cash flow needs.
“They’re out on the road, it’s 10 p.m. on the west coast, and they have a payment due the next morning. And the east coast supplier, they can make that payment and within 30 seconds and it’s settled. So they don’t have to worry about timing, they don’t have to worry about banker’s hours,” Gurz said.
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