In the push to promote the adoption of new payment rails like real-time payments (RTP) among corporates, some FinTechs are finding success in a multi-rail strategy. By offering a variety of payment rails, technology can make it easier for businesses and financial institutions (FIs) to dip their toes into real-time. This week’s Payment Rail Innovation tracker traces the latest efforts to drive uptake of the infrastructure.
Billtrust Sees Boost From Multi-Rail Strategy
In its effort to digitize and streamline B2B payments, accounts receivable (AR) automation firm Billtrust is embracing a multi-rail strategy, allowing businesses to choose how they send and receive funds. The effort seems to be working for the FinTech, which posted a 22.8 percent year-over-year increase in its revenue for Q1 2021, and raised its guidance for the full year. Total payment volume was up 146 percent, boosted by Billtrust’s recently added support for ACH and wire transactions in addition to the card rails.
Transcard Explores Corporates’ RTP Incentive
FIS’s recently launched RealNet offering is an account-to-account solution that allows businesses to move money more efficiently, choosing which rail makes the most economic sense depending on the context of the transaction. The technology supports ACH, wires, Same-Day ACH and RTP, the latter of which can be especially valuable for corporates, according to Transcard CEO Greg Bloh, who recently spoke with PYMNTS about the solution. The adoption of real-time payment rails in accounts payable (AP) and AR can be made easier through solutions that consolidate rails and optimize the process of choosing which one to use, he said. “It’s a next step and another piece of the puzzle that’s needed to really take advantage of RTP when you start looking at holistic solutions for AP and AR beyond treasury,” said Bloh.
Lumanu Enables RTP Payouts To Influencers Using Dwolla
Using technology offered by Dwolla, Lumanu has reportedly integrated new capabilities that allow for real-time payouts to influencers and content creators on its business enablement platform. Dwolla launched its technology last month, connecting third parties to the RTP network via API. Adoption by Lumanu showcases another use case for the instant payment rail beyond peer-to-peer transactions. “The immediacy of real-time payments will fundamentally change how businesses operate,” Dwolla CEO Brady Harris said in a statement when announcing the service.
Aptys Enhances ACH Tool For FIs
Aptys Solutions, which provides payment technology solutions for financial institutions (FIs), recently elevated the functionality of its ACH service. Dubbed Receipt Warehouses, the tool streamlines the process of incoming ACH transactions, allowing FIs to hold a transaction if it arrives before its effective date, and automatically posts the payment when it is scheduled. The company said the feature aims to mitigate the risk of posting ACH transactions too early prior to the settlement of funds, providing more time to avoid posting an erroneous transaction as the result of incorrect dates or amounts.
National Bank Of Egypt Loops Into Ripple
Egypt’s largest bank, the National Bank of Egypt, has signed onto Ripple to facilitate cross-border transactions between Egypt and the United Arab Emirates using RippleNet. The payments network uses blockchain to connect FIs and move money globally and more quickly. The bank’s adoption of the technology is focused on remittances, and the firms did not indicate whether they would expand their partnership to include cross-border transactions in other use cases, like B2B payments.
Engage Mobilize Envisions A Blockchain Future
The use of blockchain as a payment rail to move money remains in its infancy, but innovators continue to envision an opportunity for the technology to improve B2B payment flows. One of them is Rob Ratchinsky, CEO of Engage Mobilize. The company, which targets industrial sectors like oil and gas, sees key use cases for blockchain to facilitate the movement of data between players in complex and geographically remote supply chains, and eventually to move funds between those partners. “Overall, it does not exist at large-scale commercial efforts today, but I can see it entering the ecosystem in the next five to 10 years,” Ratchinsky told PYMNTS in an interview.
Thunes Lands Funding To Build Out Its X-Border Rails
With cross-border transactions, a key focus of payments innovation, the FinTech Thunes recently highlighted its effort to create entirely new rails and infrastructure to facilitate global business payments. The company recently raised $60 million led by Insight Partners to enable more affordable, real-time, cross-border payments that circumvent the traditional correspondent banking network. “There are billions of users that are not part of the banking system,” the firm’s CEO Peter De Caluwe told Crunchbase. “We are building the network and rails between thousands of players for this addressable market, which is valued at $50 trillion.”