Understanding the Various Payments Systems Series: Blog 2
Today, organizations and consumers all crave fast, immediate payments. In response, services like Zelle, Venmo and same-day ACH, among others, have emerged. With so many methods, it can quickly become confusing.
Adding to the confusion is the perception that funds are immediately transferred. For instance, with mobile wallets like AndroidPay or ApplePay and services like Venmo, a user will see value transferred instantly but those funds are not settled immediately.
It is imperative, then, that financial institutions and their account holders understand the key differences between each method, and understand how each impacts payment delivery.
Real-Time Payments vs. Same-Day ACH
Previously, we explored same-day ACH – one payment method that is continuing to grow in popularity. Its ease and flexibility makes it well suited for time-sensitive matters such as payroll or business-to-business (B2B) transactions.