Manufacturers See Real-Time Payments Replacing Checks

The manufacturing sector is quickly recognizing the value of real-time payments. Most manufacturers now deem real-time payments vital for business, with 61% holding this view for making payments and 65% for receiving them.

61%: Share of manufacturers that say the ability to make real-time payments is highly importantPYMNTS’ latest study reveals that small manufacturers are leading the charge away from traditional payment methods and toward real-time payments. Smaller manufacturers are 54% more likely than larger manufacturers to report that making real-time payments is highly important to business.

These are just some of the findings detailed in “Corporate Changes in Payment Practices: Manufacturing Companies Embrace Real-Time Payments,” a PYMNTS and The Clearing House collaboration. This edition explores this developing trend and gauges real-time payments’ quickly evolving role in the manufacturing sector. The report draws on insights from a survey of 125 manufacturing executives with deep knowledge of the payments environment conducted from May 3 to June 1.

Other key findings from our study include:

71%: Portion of firms citing convenience as a key reason for making more real-time paymentsThe manufacturing sector emphasizes real-time payments’ crucial role in their operations.

Manufacturing firms increasingly value real-time payments and view them as important to their operations. Smaller manufacturers generating annual revenues of between $100 million and $500 million are even more bullish in their outlook, with 85% regarding them as highly important. Many manufacturers say that real-time payments are more important than other innovations.

Counterparty acceptance is a key driver for adopting real-time payments.

Counterparty acceptance has heavily influenced the manufacturing industry’s shift to real-time payments. We found that 85% of firms that intend to increase usage of real-time payments for making payments cite this factor. Additionally, more than 2 in 3 manufacturers also highlight the importance of convenience and ease of use.40%: Share of manufacturers citing real-time payments as a top innovation priority for their companies

Manufacturers see a future in which real-time payments lead.

Manufacturing firms of all sizes are reconsidering payment strategies, and the outlook is not good for legacy payment methods. Ninety-six percent of manufacturers believe real-time payments will replace paper checks for making payments, and 87% anticipate the same for receiving payments. Most firms also forecast that real-time payments will surpass standard automated clearing house payments for making and receiving payments.

Manufacturers now view real-time payments as more than a valuable addition to their payments lineup. Download the report to learn more about how real-time payments are transforming the industry’s payments landscape.