Small Business Fleets Like Sending Instant Payments

Small- to medium-sized businesses (SMBs) in the transportation sector use instant payments more widely than other payment options. PYMNTS Intelligence finds that in the last year, 74% of these businesses surveyed sent instant payments. In fact, 48% of these SMBs identify an instant option as their most used form of payment.73%: Share of transportation SMBs that sent instant payments in the last year

Push-to-debit cards are the most widely used among instant payment methods. In the last year, 48% of transportation SMBs sent payments using this method. PayPal follows close behind, at 41%. Traditional payment methods, however, are still a part of the mix.

These are just some of the findings detailed in “Small Business Real-time Payments Barometer: Transportation Edition,” a PYMNTS Intelligence and The Clearing House collaboration. This edition examines the use of instant payments among transportation SMBs, including key factors behind payment preferences. It draws on insights from a survey of 393 transportation SMBs generating $10 million or less in annual revenue from Jan. 31 to March 25.

Other key findings from the report include:62%: Portion of transportation SMBs that sent instant payments that cite ease and convenience as a benefit

Transportation SMB’s use of instant payments depends on revenue, particularly for push-to-debit card use.

Revenue level plays a key role in whether a transportation SMB chooses an instant payment option as their go-to method for sending payments. Businesses generating more than $1 million in revenue are the most likely to do so, at 52%. This drops sharply to 34% for SMBs in the $250,000 to $1 million annual revenue bracket. Download the report to read more about which payment methods transportation SMBs of different sizes use the most.

Transportation SMBs that favor instant payments have healthier balance sheets.

The speed and 24/7 availability of instant payments provide significant benefits that translate to healthier balance sheets. More than three-quarters of transportation SMBs that use instant payments as their primary option for sending payments report that they have very or extremely healthy balance sheets. This is 23 percentage points higher than observed among those that favor non-instant methods.29%: Share of transportation SMBs that sent instant bank account-to-account payments

These SMBs not using instant payments point to a lack of familiarity and their banks not offering the service.

Two broad trends stand out among transportation SMBs that did not send any instant payments in the last year. First, a lack of familiarity with instant payments is a significant barrier to greater adoption. We found that 29% of these SMBs not using instant payments cited difficulty of use or lack of knowledge as a reason. Second, these SMBs say a lack of banks offering instant payments and counterparties accepting them are key deterrents. Providers may be able to drive adoption by addressing these concerns.

Nearly seven in 10 transportation SMBs that sent instant payments in the last year cite speed as a key benefit. Instant payments offer a range of additional important benefits to smaller businesses. Download the report to learn more about how transportation SMBs use instant payments and the key factors surrounding their payment preferences.