SAN FRANCISCO--(BUSINESS WIRE)--Today, Modern Treasury, a payment operations software provider, announced that customers have reconciled over $100 million using the Modern Treasury platform in the month of August. Its treasury management and payment operations platform serves finance and engineering teams across industries including real estate, health care, financial services, and marketplaces. Reconciled dollar volume continues to grow at a compound monthly growth rate of 25%.
Notably, more than $5M of the payments initiated were Real Time Payments (RTP), a new payment rail that brings instant, 24/7/365 payment execution to the United States. According to the Federal Reserve, over 92% of noncash U.S. payments by value occur over ACH and paper check. Modern Treasury is helping customers make the shift to RTP and remove several days from payment settlement times.
“Faster payments will increasingly become prevalent with the adoption of Real Time Payments and the future FedNow system,” said Sam Aarons, CTO and Co-Founder of Modern Treasury. “Integrating, managing, and scaling payment operations is precisely what we built our system to handle. CSV processes are part of the past. Payments are changing and the platforms that support payments need to change too.”
Real-Time Payments was launched by The Clearing House in 2017. Faster payments allow companies to free up working capital, manage cash flow efficiently, and delight customers with instant fund availability. It is noteworthy as the first new payments protocol in the US since the 1970s. The Federal Reserve is working on an instant payment system called FedNow which is expected to launch in 2024.
“Real-Time Payments enable us to send instant payouts to our real estate agent partners, any day of the week when a property is sold,” said Guy Gal, CEO and Co-Founder of Side, a customer of Modern Treasury. “RTP provides a competitive edge for us while Modern Treasury reduces the risk of error and maintains a perfect audit trail. This helps us deliver a one-of-a-kind experience to our customers.”
In addition to automatic reconciliation, Modern Treasury provides financial control workflows. Business payments are often error prone. Recent examples include an accidental $900 million payment from Citibank to Revlon’s lenders and a mistaken $35 billion dollar payment from Deutsche Bank in 2018. In a world of instant payments, auditing and financial controls become even more crucial. Modern Treasury offers control features such as custom approval rules and hybrid API and app workflows that help customers manage payments at scale while avoiding costly mistakes.
To learn more about Modern Treasury, visit https://www.moderntreasury.com.
ABOUT MODERN TREASURY
Modern Treasury builds payments operations solutions that automate the full cycle of money movement—from payment initiation, through approvals, to reconciliation—all from one app and API. Modern Treasury powers payment operations for customers in real estate, health care, financial services, and marketplaces, who reconcile over $100 million each month using its platform. Founded in 2018 by Sam Aarons, Dimitri Dadiomov, and Matt Marcus, the company is backed by Benchmark and Y Combinator, and based in San Francisco.
