Real-time payments are becoming increasingly popular as a way to facilitate fast and efficient transactions. With real-time payments, fees can be collected almost immediately, and disbursements can be made without delay. This is especially beneficial for merchants, who can receive their deposits much more quickly. It also makes bill pay and other B2B transactions much simpler and more efficient.
Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.
Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Monetizing Real-Time Payments
Business Use Cases Generating Real-Time Payment Fees:
- There are several use cases where businesses are already paying for the benefits of real-time transactions.
- B2C disbursements such as marketplace payments, refunds/rebates, insurance payouts, and loan proceeds.
- Merchant deposits that help manage cash flow.
- Bill pay, including the use of Request-for-Pay (RfP).
- B2B transactions, mostly processed through same day ACH.
U.S. payments industry participants are largely in agreement that faster and real-time payments are part of the industry’s evolution. While integration projects to prepare for these new payment types are moving forward with only the slightest consideration of a real business case, the search is still on to look for those use cases where value can be provided and customers will be willing to pay for the benefits.
In this Viewpoint, we consider the use cases where faster payments are generating revenue for providers today and the solutions that are likely to be profitable in the future.