This article was originally published as part of Real-time payments: The time is now.
Enabling businesses to move money faster, real-time payments (RTP) are quickly gaining traction. In fact, our survey of 1,000 senior finance leaders found that 56% of U.S. businesses will be using RTP by the end of 2024.
Some sectors have already grasped the opportunity and are reaping the rewards. Innovation is in the DNA of technology and fintech businesses, so it makes sense that they have been eager to adopt RTP in an effort to meet their goals. The research found that 54% are using it today and 23% plan to start in the next two years (77% total).
Other sectors that are leading the way for RTP adoption include:
This is no surprise to Anuradha Somani, Head of Payments, Global Treasury Management at U.S. Bank. “The more technology-sophisticated organizations have identified RTP as the game changer in the next 10 years,” she says. “And they are completely bullish and reaching out to their banks – they want to push the boundaries on how they can use RTP.”
What is it about RTP that is most appealing to technology firms? Our research shows that 48% of them say they’re using or considering using it to give them a competitive edge, and 46% say usage is driven by a desire to improve the customer and vendor payment experiences.
“Start-ups that have emerged in recent years really want to be at the cutting edge of technology and create their own USPs (unique selling propositions),” a global manager for compliance and controls at a multinational software company explains. “So, if they speak to a vendor and tell them they can offer RTP, that covers both of those aims and sets them apart.”
Other sectors most likely to be using RTP already – hospitality and leisure, healthcare, and retail – are using RTP to help attract the workers they desperately need. All these sectors have been hit hard by a shrinking labor market, as employees re-evaluate what they want from their careers in the wake of the pandemic.
As Somani explains, “The biggest asset that any gig-economy company has is their flex employees and, the better terms you offer, the more likely it is that they will join you,” she says. The promise of instant payment is a simple way of making an employment offer more alluring.
In turn, organizations in these sectors that are able to create a more agile and flexible workforce model will be better equipped to cope with changes in demand and thereby provide a more consistent and satisfying customer experience.
These sectors understand the transformative potential of RTP, and the fact that it offers each distinct benefits highlights its cross-sector appeal. Businesses from every industry should consider incorporating RTP into their own payments strategies; ignoring the trend could mean the significant benefits of faster-payments capacity could pass you by.
We surveyed 1,000 senior finance leaders about the rise of real-time payments and found improved business results for the first wave of early adopters. Gain insights into how innovative companies are using RTP to accelerate their digital transformation in Real-time payments: the time is now.