Finance leaders are embracing a variety of payment rails in their payables modernization efforts, according to new PYMNTS research. This week’s look at the latest in Payment Rail Innovation explores how support for mixing rails — often with a focus on real-time networks — can drive modernization for other B2B payment use cases too.
CFOs Embrace Payment Rail Variety
New data from PYMNTS’ latest study, The Strategic Role Of The CFO: How AP And AR Digitization Are Transforming Customer Relationships, a collaboration with Versapay, revealed that finance leaders are embracing a wider variety of payment rails for B2B payments. The majority of chief financial officers (CFOs) surveyed said that they have expanded their use of ACH to pay suppliers as well as use of virtual cards and real-time payment rails.
It’s part of a broader effort to drive modernization in accounts payable (AP) and accounts receivable (AR) workflows, with 57 percent of CFOs surveyed noting that AR/AP modernization is aimed at not just automating these processes but also transforming and optimizing them.
MoonPay Links Crypto Companies To Payment Rails
Cryptocurrency payments company MoonPay recently announced it has acquired a stake in BCB Group, which provides banking rails to companies operating with cryptocurrency. The investment means MoonPay can combine its crypto payment processing with BCB Group’s B2B services, which enables crypto-related firms to maintain strategic relationships with banking providers — a key challenge for businesses in the space, the companies noted.
“MoonPay does that last mile of everything a business needs, and BCB sits behind that in terms of the payments and banking rails,” explained MoonPay Chief Growth Officer Zeeshan Feroz in an interview with CoinDesk. “Bringing the two businesses closer together, we could align a growth strategy that naturally benefits both businesses.”
BCB Group CEO Oliver von Landsberg-Sadie explained that MoonPay specializes in the business-to-consumer side of cryptocurrency payments, providing crypto firms with crypto-to-fiat infrastructure. Meanwhile, BCB focuses on the B2B back-end, providing business accounts through its relationship with ClearBank.
E-Complish Invests In Real-Time ACH
Payment processing firm E-Complish has acquired payments processing provider Regal Technologies to expand its ACH processing capabilities. A press release from the firms said E-Complish is acquiring the outstanding interest of Regal, which had been operating as a sister company of E-Complish.
E-Complish is using the investment to expand its ACH processing to add Same-Day ACH as it prepares for expanded instant payment infrastructure, including Real-Time ACH and the Federal Reserve’s incoming FedNow service.
“ACH processing is going to give credit card processing a run for its money in the future,” said E-Complish President and CEO Stephen Price in a statement, adding that “we will also be ready and able when ‘Real-Time ACH’ is available.”
The Clearing House Enables Real-Time Wage Payouts With DailyPay
DailyPay is looping into The Clearing House’s RTP Network to facilitate real-time payouts of earned wages to workers in the U.S. In partnership with The Clearing House and PNC Bank, DailyPay is getting connected to the RTP rail to accelerate the time it takes for professionals to access earned wages when they wish to receive them before payday.
In a statement, PNC Treasury Management Executive Vice President and Head of Digital and Innovation Chris Ward said the tie-up not only enhances DailyPay’s functionality but also supports a new, emerging use case for real-time payment rails.
“Today’s announcement is just one more example of PNC exploring and engaging innovative uses of RTP as the premier payment solution,” Ward said. “The versatility of the RTP network enables new business models that provide opportunities for us to help clients differentiate the way they do business.”
Payfare Taps Mastercard Send For Real-Time Gig Payments
With an eye on enhancing the ability for gig workers to move money, Payfare is working with Mastercard to integrate real-time domestic and cross-border payouts for professionals within the gig worker economy.
Payfare will loop into Mastercard Send, Mastercard’s platform that uses bank and card rails to enable push payments in real-time. The solution will let gig professionals using the Payfare app to facilitate money transfers to consumer and small business debit cards.
“This partnership will open up new revenue streams for Payfare while providing more choice for our corporate clients and cardholders,” said Marco Margiotta, CEO and founding partner of Payfare, in a statement.