Increase Corporate Buy-In

The real-time payment market has already grown significantly. While the concept of instant payments for workers is relatively new, companies are rapidly adopting this technology. According to projections by ACI Worldwide and Global Data, the market for real-time payments is expected to expand at an annual rate of 63% through 2027, reaching a volume of $511 billion in annual transactions. Despite healthy adoption rates, there’s still room for growth. When more companies use real-time payment technology, it benefits everyone involved. Increased adoption leads to updated payroll systems and improved cash flow management, as well as a more consistent customer experience.

Venmo provides a good illustration of the significance of buy-in. Venmo generates revenue by processing payments for merchants, but its ability to do so is contingent on widespread consumer engagement. Similarly, real-time payment networks thrive when there’s broader corporate participation. Companies that leverage this technology will see improved relationships with gig workers and affiliates, who prioritize companies that can provide instant wage payments.

Why the Right Technology Matters

Instant payments are not always as immediate as they should be due to various issues like minimum earning requirements or data processing errors. These delays can damage the worker-employer relationship and increase payment friction, the opposite of what instant payments aim to achieve. A quality real-time payment network allows businesses to make immediate payments in any amount, even as small as $0.99, with funds automatically available to workers through digital cards or wallets.

Additionally, because many companies operate globally, the platform should support cross-border payments in local currencies. Partnering with a third-party payments provider that can deliver this experience is crucial for ensuring instant worker payments upon request. Poor technology can hinder payment processing and cause delays.

Ensure Compliance

The most significant barrier to adopting real-time payments is regulatory compliance, including Know Your Business (KYB) and Know Your Customer (KYC) standards. Many companies find it challenging to manage these regulations internally. However, the payments network provider should take on this responsibility as part of its infrastructure. This ensures global compliance for every transaction by running sanctioned checks on all users.

Adopting real-time payments will require a transition period, but businesses must embrace this change to remain competitive. Workers demand instant, on-demand payments, and companies need to provide a frictionless payment experience to meet these demands. While the initial learning curve may be steep, once implemented, businesses can reap numerous benefits from real-time payments.