Melio, a business-to-business (B2B) payments-as-a service platform for small businesses, announced it’s begun use of real-time payments.
“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,” Matan Bar, Melio’s CEO and co-founder, said in a 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.”
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.
“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, more banks are expected to support this capability.
Melio supports both The Clearing House’s RTP Network as well as the FedNow network, the company said.
“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 chief operating officer. “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.”