In an effort to streamline the payment process for its clients, Routable has incorporated the FedNow Service into its accounts payable automation platform. This addition marks a response to growing customer demand for faster and more efficient payment solutions. By integrating FedNow, Routable aims to cater to those transacting with smaller or regional banks, thereby broadening payment options for businesses across various sectors.
Routable’s recent addition reflects a developing trend within the financial services industry, where real-time payments are becoming a norm rather than an exception. In earlier years, platforms were limited to slower traditional banking networks, restricting customer flexibility and speed. With the growing acceptance and implementation of FedNow and RTP® network options, as seen with Routable, there’s a shift towards facilitating immediate financial transactions. The move also highlights increasing competition among payment service providers to offer comprehensive and faster solutions.
What Does the FedNow Integration Mean?
The introduction of FedNow expands Routable’s instant payment capabilities significantly. The company now covers 85% of U.S. bank accounts with its services. This strategic enhancement aims at optimizing payment processing times across different bank sizes and supporting diverse transactional needs. This integration also facilitates greater control for businesses in determining payment methods, a move intended to boost vendor and contractor engagement.
Will This Benefit Vendor Relationships?
Yes, the integration of FedNow is poised to enhance vendor relations. According to a PYMNTS Intelligence report, there’s a strong correlation between the speed of payment processing and the quality of vendor relationships. Routable has observed that companies are increasingly focusing on improving these relationships, with innovations in accounts payable being a critical strategy in this effort.
Recognizing the importance of real-time payments, Routable has implemented features to display instant payment options visibly. This innovation allows businesses to select the most efficient payment path, aligning with the company’s goal to optimize transactional efficiencies. Omri Mor, Co-founder and CEO of Routable, emphasized the importance of this flexibility in a recent statement:
“By expanding access to instant payments, our customers have more control over when and how to pay their vendors and contractors.”
Beyond improving payment speed, Routable’s platform has been enhanced with an AI agent designed to detect fraud and human errors. Such technological upgrades aim to ensure accurate and secure financial transactions, ultimately reducing risks associated with manual processing.
The financial technology landscape continues to evolve with real-time payment systems gaining traction. Routable’s adoption of FedNow illustrates this growing inclination towards technologically-driven solutions. Businesses are also increasingly driven by the need for more efficient liquidity management, which real-time transactions can provide. As service providers like Routable integrate additional features, they equip businesses with unparalleled efficiency and payment accuracy.
