73% of Microbusinesses Say Real-Time Payments Improve Cash Flow

For many small businesses, the most important payment is no longer the one they expect. It is the one they do not.

That is the central insight of “Immediate Impact: How SMBs Can Benefit From Instant Payments,” an installment in the PYMNTS Intelligence Money Mobility Tracker, produced in collaboration with Ingo Payments.

The report finds that ad hoc, nonrecurring payments now dominate small business cash flow, reshaping how firms think about speed, certainty and access to funds. While adoption of instant payments is rising, the report shows that the real divide is not awareness. It is digital readiness.

Ad hoc payments account for more than half of all accounts receivable transactions for small and mid-sized businesses and nearly seven in 10 dollars received. These payments are often larger, less predictable and harder to plan around than recurring invoices.

As a result, more SMBs are turning to instant payment methods to stabilize cash flow and reduce delays. But the shift is uneven.

Digitally forward industries such as gaming and the gig economy are moving quickly, while others remain tied to checks and manual processes that slow access to funds and increase uncertainty.

Three data points illustrate how sharply this divide is emerging:

32% of SMBs now receive ad hoc payments primarily through instant methods, up from 20% in 2023, signaling a broad move away from checks and traditional bank transfers.

SMBs in digitally forward industries are 45% more likely than those in other sectors to use instant payments as their most common way to receive ad hoc funds.

73% of microbusinesses earning under $100,000 a year say improved cash flow is the main reason they adopt instant payments, an 18% increase in just seven months.

Beyond these headline figures, the report points to a deeper structural shift. Ad hoc payments are not just more common. They are often larger than recurring payments, with 34% of SMBs saying that is now typically the case. That raises the stakes for how quickly funds arrive. Waiting days for a paper check or standard bank transfer is no longer a nuisance. It can determine whether a business makes payroll, restocks inventory or takes on new work.

Digital momentum plays a decisive role. Industries that invested earlier in automation and integration are better positioned to receive instant payments. Those relying on manual accounts receivable processes lag behind. Only 24% of SMBs with mostly manual systems receive ad hoc payments instantly, compared with 37% of those using automated tools. Nearly half of microbusinesses still depend on manual processing, limiting their ability to benefit from faster payments even when demand is strong.

Cost remains the biggest obstacle. About one-third of SMBs decline instant payment options because of fees, and that share has grown sharply. Integration challenges compound the problem. Fewer than one in four SMBs use third-party tools to support instant payments, leaving many without simple ways to connect faster rails to existing workflows.

The report makes clear that instant payments are no longer a niche upgrade. They are becoming infrastructure. For SMBs, the issue is not whether faster payments matter, but whether their systems allow them to take advantage of them. For providers, the challenge is to reduce friction, lower costs and meet businesses where they are.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.