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.
PYMNTS’ 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:
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 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.
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.