PURCHASE, N.Y.—Mastercard is expanding its real-time payments (RTP) and Bill Pay Exchange programs, Business Insider reports. Two years ago, the company acquired Vocalink, and this year it grabbed Transfast. Both of those companies assisted Mastercard in the development of instant payment options.
Now Mastercard is pushing even further into RTP with its B2B solution, Payment on Delivery, which lets a supplier’s bank ask for a payment and for a company to instantly pay when delivery is completed. PNC Bank is piloting the Payment on Delivery program for alcohol distribution, since payments tend to be more complicated because of various regulations.
Mastercard has also allowed new clients to use its Bill Pay Exchange program, which allows consumers to pay bills immediately from a website or banking app. Currently, Bill Pay Exchange lets customers pay bills via bank account, cards or RTP if both the billing bank and consumer are in the program, according to Ronald Shultz, Mastercard executive vice president for new payment flows in North America.
These two options will likely increase RTP adoption because they should streamline efficiency. Currently, B2B payments and bill pay still have a large amount of cash, checks and nondigital processes. Shultz views RTP as a way to help B2B payments shed “a clunky and inefficient process.”