With payments innovation continuing to accelerate, a number of new initiatives are now underway across a range of payment rails. In Nigeria, that means improving upon the legacy of the paper check, while in the U.S., Nacha is preparing corporates for faster payments. Meanwhile, chatter continues to grow about blockchain-based Central Bank Digital Currencies (CBDCs) to power cross-border transactions, with widespread implications for the payments landscape.
Nacha Touts ACH For Small Business Payments
In a recent blog post, Nacha highlighted one small business, JML Electric, as an example of how ACH payments can benefit smaller firms through digitization and cost savings. The payment rail can facilitate so-called “pull” payments, in which a business is authorized to pull funds from an account to complete a transaction. SMBs that already have platforms like QuickBooks and other accounting solutions in place can also benefit from ACH, with integration capabilities able to seamlessly create and transmit ACH files. For JML Electric, this means not having to handle physical checks, while also offering a payment method to customers that does not require additional fees, such as with credit cards.
Nacha Readies Corporates For Faster Payments
In addition to touting the benefits of ACH for small businesses, Nacha’s Payments Innovation Alliance is also taking measures to ready businesses for the proliferation of faster and real-time payments. Having already completed its Faster Payments 101 educational tool for SMBs, as well as its Playbook for Financial Institutions, the Innovation Alliance is now working to release the Faster Payments Playbook for Corporates. According to Nacha, the Playbook should go live in the first half of this year and will aim to help corporates “navigate the changing faster payments landscape.”