When we talk about instant payments, we are talking about a payment method that links up and pulls money straight from a bank account and into a customer’s, in real time. If users already have a linked bank account, offering instant payments allows for a much quicker checkout process, and payment is reflected immediately. As an example, digital wallets need registration, a deposit of funds, and a possible KYC (know your customer) procedure before allowing payment.
Real-time payment will continue to grow worldwide for years to come. The global real-time payments transaction value for 2023 sits at USD$97 billion, with forecasts of its 2030 transaction value hitting USD$376 billion.
Most used options
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- PIX
- UPI
- PROMPTPAY
- DUITNOW
How real-time payment’s work
When it comes to account-to-account (a2a), each real-time payment system has its own process.
With some services, your customer will initiate the payment through their banking app and scan the QR code on the checkout page, or use tap-to-pay technology at point-of-sale.
Others work similarly to a standard checkout, redirecting to the app or website of the real-time payment provider, with the transaction information prefilled. The user will enter their chosen verification method (biometric or OTP), and the payment will be made!
Key features and benefits of transacting using real-time payments
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Instant
funds are pulled 24/7, 365 days per year unlike traditional payment methods. The payment is reflected immediately -
Affordable
There is no surcharge for making an instant payment -
Varied transactions
instant payments can be utilized peer-to-peer (p2p), customer-to-business (c2b), and business-to-business (b2b). -
One account
Hold all your accounts under one profile
Benefits of accepting real-time payments for your business
Real-time payments are a win for global businesses and their customers. In countries with low financial inclusion and high unbanked populations, real-time payments help with integration with banks, making cross-border e-commerce transactions more accessible and convenient.
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Speed
Receive funds in real-time, and pay partners more reliably.
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Coverage
In regions where the government is involved in the payment methods implementation, the majority of banks and businesses in the area will utilize the instant payment option.
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Improved liquidity management
Instant clearing and settlement reduces the amount of money locked in processing.
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Secure
Eliminates the risk of card fraud and chargebacks.
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Varied transactions
instant payments can be utilized peer-to-peer (p2p), customer-to-business (c2b), and business-to-business (b2b).
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Instant
funds are pulled 24/7, 365 days per year unlike traditional payment methods. The payment is reflected immediately.
