The Federal Reserve rolled out its FedNow real-time payment system in July of this year, which allows companies to pay their suppliers in seconds, but a number of finance chiefs are holding off on using the technology, according to The Wall Street Journal.
A key selling point of real-time payments is the ability to closely manage working capital—it allows companies to pay their bills on the last possible day, meaning they can hold on to their cash longer. Real-time payments can also provide finance chiefs with the certainty of knowing exactly when their payments will settle and clear.
But despite the selling points, demand hasn’t taken off yet, bankers and payments executives said. Part of the delay is availability: While larger banks are mostly hooked up to at least one real-time payments system, many smaller financial institutions don’t yet have access.
Companies are holding out to see if the value of real-time payments outweighs the additional cost of changing all of their accounting systems. Read the full story.
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November 03, 2023 at 02:50AM
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Companies are taking a slow approach to using a new instant payment system - Greater Baton Rouge Business Report
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