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.
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