Many small to mid-sized businesses (SMBs) rely on non-recurring or ad hoc payments for a substantial portion of their monthly revenue. In fact, ad hoc receipts represent a growing share of SMBs’ total accounts receivable (AR) volume. This increased importance can also mean delays in receiving these payments lead to cash flow shortfalls.
Overall, instant usage continues to grow. Businesses in digitally forward industries, such as gaming and the gig economy, lead in instant ad hoc payment adoption. Currently, 32% of all ad hoc receivers surveyed say they receive funds via instant methods most often. Cash flow management and speed of good funds often drive their choice.
Despite the many benefits, costs associated with these payments and difficulties integrating instant payment processing remain key challenges. This is especially true for microbusinesses and SMBs. Addressing these issues could be key to boosting these firms’ choice of instant methods for receiving ad hoc payments.
These are some of the findings detailed in “How Instant Ad Hoc Payments Benefit Digital-First SMBs,” a PYMNTS Intelligence and Ingo Payments collaboration. This report is based on a survey of 503 SMB receivers generating less than $25 million in annual revenue across the United States conducted between June 16 and Aug. 13.
The report explores SMBs’ growing adoption of instant methods when receiving ad hoc payments. It features 11 charts of insightful data detailing the benefits and challenges SMBs face in receiving ad hoc payments instantly. This report also explores how SMBs can benefit from working with third-party providers to expand their use of instant. Download the report to learn more.