Search
 
Best Practices

Real-Time Payments: What to Know, and What to Do

RTP is poised to reshape how U.S. businesses make and receive payments. Here’s what you should be doing now to prepare.

By Michael Bellacosa & Carl Slabicki | Updated on April 19, 2018

A strong payment infrastructure provides essential plumbing to carry the financial flows of businesses. For most companies, payments move via an orderly process that has followed the same slow, steady schedule for decades. But today, for the first time in 40 years, corporate treasury departments have a new option: real-time payments (RTP). Companies can now add a new pipe to their plumbing to accommodate funds transfers that move at unprecedented speeds.

The idea sounds compelling, but changing a core corporate system that’s already working well can be frightening. At first sight, RTP may seem like an intimidating, costly investment that offers only amorphous benefits. Cost-conscious corporate treasury departments rarely set aside large budgets for innovation in accounts payable (A/P) and accounts receivable (A/R) systems.

The most successful RTP adoptions are those that are carefully designed to fit an organization’s unique and specific needs, ultimately making their treasury teams integral to the company’s strong relationships with clients and business partners. At the end of the day, a successful payment ecosystem is one that mixes and matches payment methods so that each payment utilizes the settlement method that is best for both the buyer and the seller.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

 

Recommended Stories

Inventory, Reimagined

Inventory, Reimagined

Amit Goel |

How companies should be determining their ideal inventory level in the current economic climate.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2023 ALM Global, LLC. All Rights Reserved.