Small Businesses Embrace Instant Payments: Benefits Beyond Speed

Download the Data Brief Small Business Real-Time Payments Barometer

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    Small and medium-sized businesses (SMBs) across sectors are widely using instant payments. For many, they have become their primary method of sending payment.

    Across four sectors — healthcare, hospitality, restaurant and transportation — we find that at least two-thirds of SMBs now send instant payments. In fact, roughly 4 in 10 name an instant method as their most-used when sending payments. We found the highest rate in the transportation sector, at 48%. That said, traditional methods, such as checks and automated clearing house (ACH) payments, are still more widely used.

    Notably, the data shows that SMBs turn to these faster payments for more than just speed. In fact, the majority of the businesses surveyed that used instant in the last year name other benefits, such as risk management and convenience, as the biggest reasons for doing so.

    Small Business Real-Time Payments Barometer: Instant Payments Across Four Sectors,” a PYMNTS Intelligence and The Clearing House collaboration, examines the use of these methods among SMBs in the healthcare, hospitality, restaurant and transportation (trucking and delivery) sectors. It is based on surveys of 2,346 SMBs generating $10 million or less in annual revenue conducted from Jan. 31 to April 1.

    Inside “Small Business Real-Time Payments Barometer: Instant Payments Across Four Sectors”:

    • The shares of SMBs in four sectors that prefer these faster payments
    • Which sectors have the highest rates of instant payments adoption
    • The specific instant methods, such as PayPal and instant bank transfer, SMBs use most
    • How faster payments boost balance sheet health
    • The most important benefits SMBs get from these faster payments

    Instant payments are on track to become the leading method for SMBs across key sectors. This report includes crucial information for businesses looking to keep up with payments trends that will maximize their profits and operational efficiency. Businesses that sit on the sidelines will find it harder to keep their customers and counterparties happy.

    Download the report to learn more about why instant payments are essential for SMBs across sectors.