B2B payments-as-a-service platform Melio has announced the launch of real-time payments (RTP) via the support of J.P Morgan.
The transition over to the RTP rail will provide payors with the capabilities to send near instant payments to vendors and allows businesses to hold onto funds for as long as possible, eliminating the friction of paying an invoice days ahead of its due date.
Matan Bar, Melio CEO and Co-Founder, said. “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.
“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 time frame 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 transactions within seconds, even on weekends and bank holidays.
RTP currently supports approximately 60 to 70% of US domestic B2B transactions, and with the recent launch of the Federal Reserve’s FedNow, many more banks are expected to support this capability.
“We are excited to be working with Melio to support their efforts to enable faster payment options for their customers,” commented 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.”
Melio’s newest payment offering is the latest in a string of products announced in 2023. Earlier this year, Melio launched its instalment payments feature, Pay Over Time, powered by Credit Key, providing eligible small businesses with instant access to capital through a Melio account.
“Melio is committed to being on the cutting edge of payments innovation, and real-time payments are no exception,” added Tomer Barel, Melio 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.”