With faster payments solutions increasingly in place, businesses are discovering new tools for exchanging money.
Several companies are showing an interest in faster payments solutions to help get funds exchanged quickly and efficiently. In regions around the world, including Europe and Asia, faster payments are taking a hard look at how tools such as blockchain and Same Day ACH can help improve their business. The February Faster Payments Tracker™ highlights what companies in industries from finance to construction are doing to adopt faster payments solutions.
News from the world of faster payments
While the rise of these solutions is allowing businesses to more quickly execute payments, there are also both challenges and opportunities with them.
In terms of opportunity, new data from NACHA puts an impressive dollar figure on the value of Same Day ACH transactions from credit cards. According to NACHA’s findings, Same Day ACH was responsible for over 13 million credit card transactions valued at $17 billion during a three-month period last year with 32 percent of the transaction volume attributed to B2B payments.
While this data gives interesting insight into faster payments solutions’ potential, the solutions are also presenting issues around performance and security. Fiserv, for example, recently revealed that, while payments are becoming faster, security protocols are struggling to keep pace, which is making it difficult to combat financial fraud.
Despite the challenges it presents, increased speed appears to be a welcome factor for some companies and their employers. For example, faster payments solutions are putting a new tool in the construction worker’s tool kit. This tool isn’t like a hammer or nail gun, and it won’t fit in a construction worker’s tool belt. But it can help contractors and subcontractors get access to funds faster. For the February edition of the Faster Payments Tracker™, PYMNTS spoke with Geoff Arnold, CEO of lienwaivers.io, a company that helps construction companies and contractors quickly exchange documents to facilitate quicker payments.
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About The Tracker
The PYMNTS Faster Payments Tracker™, powered by NACHA, is your go-to resource for staying up to date on a month-by-month basis. The Tracker highlights the contribution of different stakeholders, including institutions and technology coming together to make this happen.