Melio, a leading B2B payments-as-a service platform for small businesses, announced the launch of real-time payments, which provides payors with the option to deliver funds instantly to their vendors. This new capability to deliver funds faster allows businesses to hold on to their funds for as long as possible, rather than paying days ahead of an invoice’s due date just to ensure the payment arrives 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,” said Matan Bar, Melio’s CEO and co-founder. “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.”
Compared to ACH transfers – which have strict timeframe restrictions and can take up to three business days to process – Melio’s real-time payments feature, supported by J.P. Morgan Payments, can process payments within seconds, even on weekends and bank holidays.
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“We are excited to be working with Melio to support their efforts to enable faster payment options for their customers,” said Rupa Krishnan, Head of Global Real-Time Payments at J.P. Morgan. “Making it more convenient for businesses and vendors to receive money any time of the day is another example of our overall approach to empowering businesses to grow, diversify and thrive.”
Real-time payments can currently support approximately 60 to 70 percent of U.S. domestic B2B transactions, and with the recent launch of the Federal Reserve’s FedNow instant payments infrastructure many more banks are expected to support this capability. Melio supports both The Clearing House’s real-time payments network as well as the FedNow network.
“Melio is committed to being on the cutting edge of payments innovation, and real-time payments are no exception,” said Tomer Barel, Melio’s President and COO. “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.”
Real-time payments are Melio’s latest offering in a string of innovative new products announced this year. Earlier this year, Melio launched its installment payments feature, Pay Over Time. The product, powered by Credit Key, provides eligible small businesses with instant access to capital through their Melio account.
SOURCE: PRNewsWire