The Biggest RTP Rival Is the Payment System That Already Works

Businesses that use real-time payments tend to see more value than businesses still deciding whether they need them at all.

The divide emerged from the PYMNTS Intelligence report “The Real-Time Perception Gap: How Experience Is Driving the Next Phase of Instant Payments Adoption,” the June installment of the Real-Time Payments Tracker and a collaboration with The Clearing House (TCH). The report found that 85% of businesses using instant payments cited faster access to funds for vendors and suppliers, 82% saw quicker transaction processing, and 81% pointed to around-the-clock payment availability. Meanwhile, 79% reported improved cash flow management, and 76% cited more efficient reconciliation.

Businesses that had never used TCH’s RTP® network gave its overall return on investment a score of 52 out of 100. Businesses actively using the network put that figure at 71. The FedNow® Service showed a similar divide, with users rating ROI at 73 compared with 52 among nonusers.

The findings suggested that the adoption question involves more than transaction speed. Once companies put real-time payments into regular use, they can incorporate immediate settlement into liquidity decisions, reconciliation, supplier payments and other treasury functions.

The research found that 78% of businesses using instant payments said they strengthen supplier relationships, and the same percentage cited an improved ability to capture early-payment discounts. Another 77% said the payments improve their competitive positioning.

When Existing Payments Already Work

The strongest competitor to real-time payments may be the payments infrastructure already sitting inside corporate finance departments.

The report found that 24% of businesses that do not use instant payments said their current methods work well enough. The argument had some operational support, as 94% of businesses reported that most payments arrive on time, while 86% described their accounts payable processes as efficient.

For a CFO or treasurer, therefore, the calculation is not simply whether an RTP network transaction moves money faster than ACH or a check. The calculation includes the expense and disruption of changing systems against the incremental financial value produced by faster settlement.

That places weight on integration. Real-time payments must connect with ERP, treasury management and accounting systems if companies are to use the information and liquidity advantages that accompany immediate settlement.

Integration also determines whether instant payments simplify finance operations or merely add another rail for employees to manage. A payment that settles immediately but requires separate data entry, reconciliation procedures or approval workflows can transfer friction from the transaction itself into the surrounding back office.

The economic argument consequently depends on choosing where real-time settlement produces enough value to justify the change. Faster supplier payments can help companies capture discounts or time payments more precisely. Immediate settlement and balance visibility can give treasury departments greater control over liquidity. Automated reconciliation can reduce the administrative work associated with determining whether payments were received and properly applied.

Cost remains part of that equation, particularly for small companies. The report found that 19% of businesses overall said lower payment costs or fees would most improve payment performance, compared with 28% of businesses generating between $1 million and $5 million in annual revenue.

Adoption plans indicated that businesses are nevertheless moving toward real-time rails. According to the report, 29% planned to adopt real-time payment capabilities within six months after being surveyed. Looking further ahead, 86% said they plan to adopt the RTP network eventually, including 53% expecting to do so within two years.

The remaining adoption barriers therefore concern how real-time payments fit into corporate operations as much as the payment rail itself. Businesses already have payment methods that usually get the job done. For broader adoption, real-time payments must provide enough gains in liquidity, reconciliation, supplier management and financial control to make changing those established processes worthwhile.

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