Real-Time Payments Set to Replace Checks, ACH in the Manufacturing Industry

Real-Time Payments to Replace Checks, ACH in Manufacturing

The manufacturing industry is on the verge of a major transformation in payment practices, PYMNTS Intelligence revealed.

The report “Corporate Changes in Payment Practices: Manufacturing Companies Embrace Real-Time Payments,” a PYMNTS Intelligence and The Clearing House collaboration, examined the growing interest and adoption of real-time payments within the sector. Surveying 125 decision-makers from manufacturing firms across the United States, the study provided insights for FinTechs, major technology players, card networks and banks.

Traditional payment methods will lose out

The study highlighted the support for real-time payments within the manufacturing industry. Ninety-six percent of manufacturers expect real-time payments to replace traditional checks when making payments, while 87% anticipate the same for receiving payments. The shift signifies a change in payment preferences, as manufacturers recognize the benefits and efficiency of real-time transactions.

Similarly, automated clearing house (ACH) payments, once standard practice between buyers and suppliers, are expected to diminish in importance. The report revealed that 81% of firms forecast real-time payments replacing standard ACH payments for making payments, while 84% predict the same for receiving payments.

Debit cards are also projected to lose relevance, with 77% of respondents expecting real-time options to replace this method for making payments, and 86% foreseeing the same for receiving payments.

Still, even as real-time payments increasingly become the norm, cash and credit cards are expected to remain relatively common. Fifty percent of manufacturing companies said they foresee real-time payments displacing cash, and 32% anticipate the method replacing credit cards for making payments. This suggests that while real-time payments are poised to revolutionize the industry, traditional payment methods will still have a role to play.

The manufacturing industry is undergoing a paradigm shift in payment practices, with real-time payments poised to replace traditional methods. The survey results indicated support for real-time payments, with manufacturers recognizing the benefits of faster, more efficient transactions. The future of payments in the manufacturing sector is set to be dominated by these kinds of payments, changing the way businesses conduct financial transactions.