What are real-time payments?
Real-time payments are funds transfers that provide near-instant money availability through payment networks that operate 24/7, year-round.
- Cash flow optimization: Retain funds longer while still ensuring on-time payments through precise time control
- Stronger vendor relationships : Foster positive business connections through reliable, prompt payments and potentially negotiate better terms
- Improved receivables: Access funds immediately upon payment, enabling instant delivery of goods or services
- Streamlined operations : Reduce payment reconciliation time and strengthen financial controls through payment finality.
How do real-time payments work?
Unlike batch-processing systems, real-time transactions typically complete within seconds through a straightforward process:
Payment initiation:
The payer sends payment through their digital banking platform such as a bank website, including recipient account details and payment amount.
Network processing :
The payment moves through a real-time payment network operated by a financial authority or bank consortium, processing individually.
Instant confirmation :
Both the payer and recipient receive confirmation.
Bank verification :
The payer’s bank confirms transaction details and available funds.
RTP Benefits
Fast
- Send and receive payments 24/7/365
- Immediate availability of funds
- Irrevocable payments
Transparent
- Enhanced data transfer and messaging capabilities
- End-to-end immediate payment confirmation
- Alerts notify recipients of available invoices
Secured
- Secure system for payments and messages
- Real-time fraud screening of all outbound transactions
- Analyzed in the network for potential fraud
Integrated
- Exchanges information with messaging
- Works directly with payables and receivables systems
- Funds travel together with remittance detail
How can Liftoff’s RTP help transform your business?
Avoid Supply Chain Disruption
- Expedite payment to a supplier for just-in-time delivery.
- Extend your investment cycle by paying last minute or when the situation requires.
- Transmit extended supply chain data with payment.
Billing and Collection Activities
- Help collect amounts that are due or owed.
- Improve collection performance.
- Operate on an intraday basis to keep up with the speed of commerce.
- Increase control over liquidity and working capital.
Deliver Immediate Payment When Required
- Meet unexpected, emergency payroll needs.
- Offer on-the-spot payments, reimbursements, earned wages, bonuses, commission payments or termination payouts.
Put Exception and Dispute Resolution on the Fast Track
- Reduce unapplied cash balances.
- Reduce customer call volumes to achieve cost savings and scalability.
- Operate on an intraday basis to keep up with the speed of commerce.
Accelerate Your Cash Flow with Real-Time Payments
Instant, secure fund transfers that work 24/7 – even on weekends and holidays.
Final, irrevocable transactions in seconds
Transparent, secure payment verification
Strengthen vendor & customer relationships
Improve reconciliation and working capital control
| Unlimited Transfer Amount | ✔ | ✘ | ✘ | ✘ |
| Unlimited Number of Transactions | ✔ | ✘ | ✔ | ✘ |
| Working Capital Control | ✔ | ✘ | ✘ | ✘ |
| Secure Payment Verification | ✔ | ✔ | ✔ | ✔ |