Modern Treasury Expands Instant Payments Support to Mutual Customers at 6 Big Banks

Modern Treasury has expanded instant payments support for mutual clients of six top banks.

“Money is moving swiftly toward a real-time future, and seeing customers use Modern Treasury to enable instant payments with some of the largest banks in the U.S. is a testament to the accelerating adoption of these exciting new payment rails,” Modern Treasury Co-founder and CTO Sam Aarons said in a news release Wednesday (Aug. 14).

“By making instant payments easier to access for our customers, we’re helping them deliver better customer experiences while enabling real-time insight into cash flow.”

The expansion applies to customers of Bank of America, Cross River, JPMorgan Chase, PNC Financial Services , U.S. Bank and Wells Fargo.

The release notes the importance of instant payments, powered by the Federal Reserve’s FedNow service and The Clearing House’s RTP network, in helping businesses move money faster and gain greater insights into that movement.

“Modern Treasury helps its customers access instant payment capabilities by expanding support for these rails with banks,” the release said.

The company adds that this offers a faster way to move funds via new payment rails than traditional ACH, wire, or check, while also supporting the ability to access the “Request for Payment” (RFP) capability at an increasing number of banks.

“As the adoption and coverage of RFP grows, customers can leverage it for faster, irrevocable, 24×7 pay-ins while also using it to address ACH’s insufficient funds risk,” the release added.

PYMNTS recently examined the rise of the FedNow service — which went live last July and now has more than 900 banks on board — in a conversation with Keith Olson, vice president of ACH and online banking at Nuvei.

He said that FedNow has some accomplishments to flaunt as it celebrates its first birthday, there is still no “killer use case” that will make instant payments ubiquitous.

There have been major differences in the approaches toward getting financial institutions (FIs) to embrace and campaign for real-time transactions, particularly debit transactions, Olson said.

For example, there has been a top-down push in Europe, with central banks directing FIs to sign up for various payments schemes.

As seen here in the United States, “even though it’s the Federal Reserve, because they did not mandate participation, they had to encourage participation,” Olson said.

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