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Routable, a San Francisco-based accounts-payable platform provider, has expanded its support for real-time payments through connectivity to FedNow, the Federal Reserve’s 2-year-old real-time payments platform.
With the addition of FedNow, Routable says its customers have the ability to send instant payments to as many as 85% of bank accounts in the United States. The addition of FedNow as a payment option complement’s Routable’s support for real-time payments through The Clearing House’s RTP network and makes it easier for businesses to pay vendors and contractors, the company says. Through FedNow, businesses can send payments at all times every day of the week, including weekends and holidays.
Increasingly, businesses are adopting real-time payments because many vendors have a need to be paid instantly.
“Our customers have a huge demand for real-time payouts. FedNow adds an additional option to extend coverage to payees that didn’t previously have access to instant payments,” Abhijeet Ranadive, chief product officer for Routable, says by email. “In some instances, [paying in real time] has led to higher contractor-retention rates, which has a material impact on the business.”
Routable’s platform displays the vendors eligible to receive instant payments, enabling customers to choose the best method for each payment.
“Our customers require flexibility in payment methods and speeds,” Ranadive adds. “Providing more coverage for instant payments enables greater flexibility for our customers.”
