Real-Time Payments Guide: The Next Business Disruptor

Posted on October 11, 2022
Real-time payments guide


Get Paid Faster. Real-time payments (RTPs) help businesses do just that. As the name suggests, RTPs offer users speed that cannot be matched by any other payment method.

With a business environment that is more competitive than ever, gaining access to funds as soon as possible is vital.

Our real-time payments guide is a must-read for Canadian business owners looking to learn more about real-time payment technology. 

What are Real-Time Payments? Breaking Down the Next Big Thing in Payments

Rapid payments, real-time payments and faster payment processing have made their way into North America, completely revamping the financial transaction process. 

Bringing together speed, data, and communication, RTPs allow for the immediate availability of funds, settlement finality, instant confirmation, and real-time information—all in a payment made in seconds.

Access Real-Time Payment Transaction Data

Talk about more bang for your buck; real-time payments outperform every other payment method regarding transaction data and messaging capabilities. A significant amount of information can be attached to every transaction, including remittance data.

Real-Time Payment Solutions Put An End To: 

Strict one-way movement from payer to the payee - Push and pull funds instantly

The dark abyss of the payment unknowns - Has the payment been processed? Have funds been received? Strategic decision-making is almost impossible with a lack of transaction visibility.

Cash flow challenges - Whether a business is paying out or getting paid, real-time payments provide a deeper clarity on where a company stands in real-time.

With precise transaction data available, an abundance of insights can be garnered to: 

  • Enhance business performance
  • Improve operational efficiencies
  • Monitor fraud 
  • Manage and limit risk exposure

Real-Time Payments Deliver Real-Time Savings 

It is not just about fast fund disbursement. RTPs are revolutionizing the accounts receivable and account payable practices from top to bottom. A Citizens Financial Group nationwide survey found nine out of ten businesses zeroing in on RTPs to seize momentum in various areas, including cash flow management and payment data.

52% expect an improvement in cash flow management

46% believe it will help them conduct general accounts payable activities, including payroll

42% say it will facilitate payments requiring immediate receipt

40% feel it will dramatically improve collection activity and posting to clients’ accounts.

RTPs are addressing some of the biggest business pain points. Real-time payments solve the challenges surrounding the companies’ AR unknowns. Forget how long a cheque is stuck in the mail; there is no need to worry about when a payment will arrive or when a payment will be processed.

B2B Payments shift to Real-Time Payments

The Future of Real-Time Payments

As adoption accelerates, the industry is expected to hit US $16 billion by the end of this year.

With more than 40 countries having RTP solutions in place and six more countries set to launch before 2023 (including Canada), Canadian businesses are already getting in on the action.

Canada hit 70.3 billion real-time transactions in 2020, up 41% from 2019.

Real-time payments become the answer as more companies look to optimize efficiencies, scale up in the market, and increase their bottom line. Instant payment solutions have reshaped the payment landscape, becoming critical in adding to a company’s profit stream. The time to gain insight and learn more about this topic is now.

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