From vendor pay to gig workers, enterprises are merging into the fast lane for payments.
And as enterprises adopt models that rely on agile, ad hoc transactions, instant payments, once considered an option for specific payment scenarios, are now emerging as a central pillar of enterprise payment strategies.
The latest PYMNTS Intelligence in “How Instant Pay Is Becoming the Standard for Ad Hoc Payments,” a collaboration with Ingo Payments, found that 92% of senders see instant as the future of ad hoc payments, with more than a quarter of senders (28%) believing it will take one to two years for instant payments to become the standard, with another 41% of senders thinking it will happen in three to five years.
After all, vendors, suppliers, gig workers and other ad hoc recipients are becoming accustomed to rapid payment options in personal finance, like peer-to-peer apps, and are demanding the same in professional contexts. This push for immediate access to funds is particularly strong in sectors with high gig or freelance worker populations, where financial flexibility can be critical.
Against that backdrop, instant usage for ad hoc enterprise payments is becoming a competitive advantage and differentiator. Need a refund? Done. A payout for a gig worker? Already sent. These transactions used to take days, but today, enterprises are embracing instant payment as the new standard for business.
By moving away from the same-old payment rails and opting for a more flexible, on-demand approach to their payments, enterprises are not just meeting the current expectations of vendors and workers but also future-proofing their payment processes in an era where speed, transparency and flexibility are paramount.
See also: What 17 Payments Experts Expect From Instant Payments in 2024 and Beyond
The Secret Sauce of Instant Payments? Better Relationships
It’s not just about speed — instant payments have become a must-have for businesses looking to keep relationships rock solid. Per PYMNTS Intelligence data, nearly half of enterprises (42%) say customer and vendor retention is their top reason for offering instant options.
That’s because for vendor and supplier relationships, fast payments help establish trust and goodwill, enhancing the overall business relationship. Vendors that receive timely payments are more likely to offer favorable terms or go the extra mile in providing products and services. Keeping clients and vendors happy, after all, is what keeps business running smoothly, and nothing says “we value you” like fast payments that hit accounts without delay.
Per the study, 39% of enterprise senders report that they always provide instant payment options for ad hoc transactions, while just 16% report “never” providing instant options.
Of course, making instant payments happen isn’t as easy as flipping a switch. Integrating these options into existing financial systems can get expensive, and for 35% of companies, that’s reason enough to avoid instant options. But companies with vision have a solution: third-party partners. In the next three years, 55% of senders are planning to boost their use of third-party solutions to make instant payments smoother, faster and more flexible.
Leading the charge are the gaming and gig economy industries, where 66% and 60% of companies, respectively, are upping their investment in these partnerships. The goal? Multiple instant payment options and seamless integration to keep those ad hoc payments flowing without a hitch.
Read more: Anti-Fraud Innovations Keep Instant Payments on Right Track
When it comes to paying out fast, most companies are turning to a trusty friend: push-to-debit. Why? It’s secure, familiar, and it works. Right now, 50% of ad hoc payments are made this way.
But that’s not to say every industry is on the same page. In transportation, for instance, many companies are turning to the Real-Time Payments (RTP) network to get cash into the hands of drivers ASAP, showing that some sectors are customizing instant options to better fit their unique needs. But across the board, it’s clear: businesses want to stick with what they know works, and push-to-debit is leading the charge.
And as the ecosystem for ad hoc instant payments continues to mature, enterprises are positioning themselves to embrace an increasingly digital payment future. And 32% of the time, companies are covering the full cost of these payments. Think refunds, gig worker payouts, or prize winnings. However, transportation firms are a bit more selective when it comes to their drivers — there, the driver typically foots the bill.
The rise of instant payments also reflects a broader shift in enterprise accounts payable (AP) practices, as ad hoc payments become a larger portion of AP volumes. Currently, ad hoc transactions comprise an average of 36% of enterprises’ AP volumes in dollars, up from 29% in early 2024. This growth points to an evolving business model in which companies increasingly favor one-off payments over traditional, recurring payee structures.
The bottom line? Instant payments aren’t just a fad — they’re becoming the backbone of enterprise payment strategies. The future is fast, and in the world of ad hoc payments, that’s exactly how companies like it.
We get a lot of press releases here at PYMNTS. We consider all of them, and some are more newsworthy than others. But this one really got our attention. This past week, Diebold Nixdorf made headlines with its announcement of successfully installing two new automated teller machines (ATMs) at the U.S. National Science Foundation’s McMurdo Station in Antarctica. This achievement marks a significant milestone in banking accessibility, to be sure. We would like to meet the crew that installed them. We’d also like to know why they needed two. Was there a line at the first one? More to come on that.
According to Diebold, McMurdo Station is Antarctica’s largest research and logistics hub, supporting a fluctuating population that ranges from fewer than 200 residents during the winter months to up to 1,100 individuals during the summer (October through February). The presence of these ATMs is crucial, it says, as the next closest banking facilities are thousands of miles away, making them the only ATMs on the entire continent. How’s that for a value proposition?
The DN Series ATMs are designed for always-on availability. And why do they need two? One ATM is actively in use, while the second serves as a backup for spare parts, ensuring uninterrupted service in this isolated area. These machines are connected to the DN AllConnect Data Engine, which leverages Internet of Things (IoT) connectivity, machine learning, and artificial intelligence (AI) to monitor their performance. A dedicated team continuously aggregates and analyzes technical data to identify potential issues, enabling remote diagnostics and repairs. The ATM can be maintained by trained staff at NSF McMurdo Station, or the Diebold Nixdorf service team can remotely guide them through the repair process.
Anyway, it got us thinking. Are there other surprising ATMs in extreme locations? Well, of course, there are. Here’s a sampling of what we found.
At an altitude of about 5,364 meters (17,600 feet), the Mount Everest Base Camp in Nepal is another unexpected place to find an ATM. Although it’s not a permanent fixture and is often set up seasonally, it caters to climbers and trekkers who need cash for local transactions. This temporary ATM service underscores the adaptability of banking services in extreme environments.
In some parts of the Amazon rainforest, particularly in Brazil and Peru, ATMs can be found in small villages and towns. These machines are vital for local communities, providing access to cash in areas where digital payment options might be limited. The presence of ATMs here demonstrates how banking services can reach even the most remote communities.
Located in the Tibet Autonomous Region, Nagqu is home to one of the highest ATMs in the world. This region is very remote, with limited infrastructure, making the presence of an ATM a notable example of banking accessibility in extreme environments.
In the Thousand Islands (Kepulauan Seribu) off the coast of Jakarta, Indonesia, there’s a floating ATM. This unique ATM serves the local community and tourists on the islands, demonstrating how banking services can adapt to isolated marine environments.
Longyearbyen, the administrative center of the Svalbard archipelago in Norway, boasts the most northerly ATM. This location is one of the most remote inhabited places on Earth, with limited access to mainland Norway, making the ATM a vital service for residents and visitors.
On a more serious note, the installation of ATMs in places like Antarctica and other remote locations highlights the evolving nature of banking technology. With advancements in IoT, AI and remote diagnostics, it’s becoming increasingly feasible to provide banking services in areas previously considered inaccessible. As we look to the future, it will be interesting to see where else ATMs might appear. Whether it’s on a remote island, at the top of a mountain or even in space, the ability to access cash is becoming more universal than ever. And who knows? Maybe one day, we’ll see an ATM on Mars, serving the first interplanetary travelers.
For now, the presence of ATMs in unexpected places reminds us that banking is not just about transactions; it’s about connecting people and communities across the globe, no matter how remote they might be.
