40% of Manufacturers Say Real-Time Payments Among Most Important Innovations

About two-thirds of manufacturers said real-time payments are an important innovation within their company.

Among these manufacturers, 40% said real-time payments are one of the most important innovations within their company, according to “Corporate Changes in Payment Practices: Manufacturing Companies Embrace Real-Time Payments,” a PYMNTS and The Clearing House collaboration.

Another 33% of the manufacturers said real-time payments are an important innovation, although not among the most important, the report found.

Manufacturers’ interest in real-time payments is driven by the many advantages this payment method has over others, PYMNTS Intelligence found in a survey of 125 decision-makers at manufacturing firms across the United States.

These advantages include convenience, ease of use, security and cost-effectiveness. About two-thirds or more of the manufacturers surveyed mentioned each of these benefits of real-time payments.

The Clearing House reported in July that 150,000 businesses are now sending payments over its RTP instant payments network — a 50% increase since December.

The RTP network has been providing instant payments to consumers and businesses for more than five years, and more than 3 million consumers each month are sending payments that clear and settle over the network.

There are several use cases in which businesses have been benefiting from the RTP network, according to The Clearing House. For example, by receiving payments from daily transactions through the RTP network, businesses can address cash flow concerns more effectively.

The network has also been used in transportation and toll payments to simplify the process of adding money to electronic tolling accounts. Auto sales have been streamlined by allowing payments for new or used vehicles to be made through the RTP network, even on weekends.

The network also allows for seamless transactions in the real estate industry by facilitating instant payments related to title insurance and mortgage closings.

“As more banks and credit unions join the RTP network, their customers and members are experiencing the benefits of real-time payments,” Rusiru Gunasena, senior vice president of RTP Product Management at The Clearing House, said when announcing the trends Sept. 6.

Looking ahead, the decision-makers at manufacturing firms surveyed by PYMNTS Intelligence said that real-time payments will not only be added to their lineup of payment methods but will replace traditional methods — especially checks and standard ACH.

The report predicted that as the advantages of real-time payments become more widely acknowledged, the adoption of this payment method will accelerate across the manufacturing industry.

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