Especially over the last few months, businesses and consumers alike have grown wary of using cash and checks due to the coronavirus pandemic. This has led to a growing number of business owners to turn to real-time payments (RTP). In fact, the majority of businesses that haven’t already implemented this solution have it in their plans to do so.
The Clearing House launched real-time payments over two years ago, which enabled financial institutions in the U.S. to send and receive payments instantaneously, 24/7, year-round. However, due largely to the pandemic, the benefits are just now resonating. The pandemic has created national emergency situations in the U.S. since March. Businesses and households have struggled to pivot and adapt amid all the uncertainty. For business owners, it has exposed the downsides of relying on paper payments and the need to modernize.
A recently released report found that a slim 9% of corporate executives had no plans to incorporate real-time networks. The overwhelming 91% left had a definite interest. This is a considerable leap from the beginning of this year (and before COVID-19 swept the globe).
In a PYMNTS report that analyzed 500 financial executives before the pandemic, just 66.7% of executives were either “very” or “extremely” aware of real-time payments, while 71.9% were “very” or “extremely” interested in the system. Meanwhile, 85.3% were either in the process of implementing RTP or had plans to do so over the next few years. Clearly, the pandemic has pushed RTP to the top of the priority list, based on the latest report.
Why Businesses Are Adopting Real-Time Payments
Here are the top reasons why banks and businesses are – and should – embrace real-time payments:
The Customer Experience
Banks and businesses are quickly realizing they need to adapt their current business models to address the changing demands of customers and the industry. More than ever, there is a need to provide the highest value and enhance the customer experience. Real-time payment capabilities can significantly improve the experience of refunds and disbursements, for example.
Adopting real-time payments allows businesses to remain competitive through upgrading their systems, processes, and technologies. Of course, improving services goes hand-in-hand with building relationships with customers. By providing processing that involves more transparency, lower fees, and quicker turn-around times, you will exceed client expectations and gain an edge over competitors.
How to Implement RTP for Your Business
As the needs and demands of customers continue to shift during COVID-19, you might feel that it’s time your business jumped on board. For many industries, it can be difficult (especially right now, as providers shy away from risk) to secure this merchant service. Some business types are categorized as high risk and are turned away.
If this is the case for you, the key is to find a provider that offers high risk merchant accounts. An industry-leading high-risk specialist like EMerchantBroker can help you easily apply online and set up real-time payments in as little as 24 hours. Offering real-time payments can help you boost revenue during tough times, gain a competitive edge and provide the options your customers expect today.