Melio rolls out real-time payments

This new capability from Melio to deliver funds faster allows businesses to hold on to their funds for as long as possible, rather than paying days ahead of an invoice’s due date just to ensure the payment arrives on time.

Officials from Melio said that while consumers have taken advantage of real-time payments for years, vendors and their small business customers are now able to reap the benefits of this innovative technology. Real-time payments are a game-changer for small businesses as it allows payors to keep cash longer and be on time even when initiating a payment at the last minute.

Increasing transaction speed with J.P. Morgan

Compared to ACH transfers – which have strict timeframe restrictions and can take up to three business days to process – Melio’s real-time payments feature, supported by J.P. Morgan Payments, can process payments within seconds, even on weekends and bank holidays.

J.P. Morgan's spokespersons emphasised that the availability of real-time payments offers the convenience for businesses and vendors to receive funds at any time of day, showcasing their broader strategy to enable growth and diversification.

Real-time payments can currently support approximately 60% to 70% of US domestic B2B transactions, and with the recent launch of the Federal Reserve’s FedNow instant payments infrastructure many more banks are expected to support this capability. Melio supports both The Clearing House’s real-time payments network as well as the FedNow network.

Melio’s team noted that vendors and small businesses will not just be able to access this capability directly through their platform, they will also have access to real-time payments through the platforms of their partners who have embedded their technology.

Previous launches by Melio

Real-time payments are one of Melio’s latest offerings in a string of innovative new products. Previously, in August 2023, Melio has introduced a Pay Over Time solution in collaboration with B2B BNPL provider Credit Key.This Accounts Payable product aims to offer small businesses flexible terms for paying vendors.

The service allows businesses to pay bills in monthly instalments, providing eligible users with instant access to up to USD 50,000 through their Melio account. While suppliers receive full and timely payments, business owners gain the flexibility to extend payment terms, choosing to pay in net 30 terms or in up to 12 equal monthly instalments.