Business in the instant payment world

 Many jurisdictions are working on implementing a low value system on real time rails. Built on ISO20022 payment messaging standards, these promise the availability of instant and irrevocable settlement as well as rich data about the transaction such as invoice details.

Some well established business use cases that will benefit from these new capabilities  where payments are available 24x7  as opposed to time delay for ACH and checks are:

-Ecommerce vendors buying and selling online

-Gig economy payroll for workers for payment of hourly wages

-Emergency relief payments that we have become familiar during this pandemic

The benefit to the receiver are obvious-- money in hand instantly. But the business are also needs to step up in managing this sea change such as :

-How will information on the remittance be stored and reconciled

-If you are receiving funds after hours how will this be managed in an automated manner in your AR.

-What approvals will be in place to release the payment noting these are irrevocable and instant.

Think of the improvement in cash flow with these new tools. Also the reduction in time spent reconciling payments. Paying by installment may lead to new and more revenue.