Chase’s New SMB Offerings Point to Appeal of Ad Hoc Real-Time B2B Payments

In B2B interactions, faster payments — especially ad hoc payments — may prove to be a competitive advantage.

PYMNTS Intelligence found that non-recurring payments represent roughly a quarter of total accounts payable volume. One-third of companies surveyed said improved customer/client satisfaction would be part of improved ad hoc payments.

Additionally, 6 in 10 enterprises sending tips and payments to employees and gig workers will pay fees to use instant payments.

The greenfield opportunity for instant payments to be part of a business’s payment options — depending on the use case — looms large. As many as 30% of these types of payments are made to individuals, and roughly a quarter are made to other businesses.

To that end, and as part of a slew of new tools being launched by J.P. Morgan for small business clients, firms can opt for real-time payments on a pay-as-one-goes continuum. Chase participates in both real-time payment rails operating today: the RTP® network , via The Clearing House , and the recently launched FedNow® Service .

Pay as You Go

Chase said Wednesday (May 1) that it is offering real-time, same-day and standard ACH payments without a flat monthly fee. Chase’s own data noted that 54% of business owners said they would change banks to one that sends same-day or real-time electronic payments. Most companies — at about 70% — would prefer not to send paper checks to cover their payments.

The Pricing Structure

Jameson Troutman , head of product for small business at Chase, told PYMNTS that in terms of pricing, same-day and real-time fees are 1% of the value of the transaction with a max charge of $25 per transaction. He added that standard ACH fees are $2.50 for each payment up to 10 transactions per month, and then $0.15 per payment above the 10-per-month transaction threshold.

“Customers need only to enroll once,” Troutman told PYMNTS, adding that the per-transaction construct helps firms “best manage their cash flow and make the best choice for their business with each transaction.”

Chase customers have logged 60% year-over-year growth in transaction volumes, he said. Active users of the faster payments options have surged by 35%.

Asked by PYMNTS about use cases and verticals that have shown strong use of faster payments, he said that the gig economy and transportation industries have found that real-time payments “can become an incentive to encourage people to work with your business versus others.”

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