Instant Payments Data Dive Report

12 Charts Tell the Story of Instant Payments

May 2024

What are the latest developments in instant payments, and what will happen next? This special digest centralizes some of PYMNTS Intelligence's latest data insights to reveal just that.

• Insights on consumer usage and views of instant payments
• SMBs use of instant methods for ad hoc payments, and the issues they face
• How those sending payments are lacking with instant payment methods


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    Instant payments have taken center stage more and more in recent years, with the FedNow® Service launching less than a year ago. Analyzing these developments can be challenging, with senders and receivers, consumers and small to mid-sized businesses (SMBs), and regular and ad hoc payments all involved.

    Below, we present 12 charts and corresponding statements about the space to highlight why more growth is likely, detail some key impediments to instant payment adoption, and reveal a key misperception that could be impacting this equation and slowing growth. These findings are also available as an eBook.

    Consumers and Instant

    1. Consumers’ use of instant payments is on the rise and will likely continue to grow as more senders offer these options.

    32%

    Share of consumers who regularly choose instant to receive nongovernment disbursements, up by 11% in the last quarter

    2. Consumers are vastly underprovided instant payments, as less than half of those who would use instant if given the option actually had the opportunity to do so.

    77%

    Share of consumers who would use instant payment methods if given the option

    3. Consumers are generally highly satisfied with instant payment methods, which could encourage higher usage rates.

    77%

    Share of consumers receiving disbursements instantly who were highly satisfied with the payment method

    4. As instant payments are growing more popular and satisfaction with the payment method is rising, fees are becoming less of an issue for consumers.

    14%

    Amount by which the share of consumers willing to pay a fee to receive payments instantly increased in the past year

    SMBs and Instant

    5. Ad hoc payments comprise the majority of SMBs’ AR in dollars, meaning a delay in funds could be devastating to their cash flows.

    72%

    Share of small to mid-sized business (SMB) receivers’ monthly accounts receivable (AR) that are ad hoc payments, in dollar volume

    6. Small SMBs’ portion of ad hoc payments received instantly was up 24% in the last quarter, indicating that usage is undergoing a rapid rise among companies generating less than $25 million in revenue.

    39%

    Share of ad hoc payments received instantly by SMBs

    7. With only 39% of ad hoc payments currently received instantly, the share of receivers selecting instant payment methods could rise significantly if more senders offered this payment method.

    66%

    Share of receivers who would use instant payment methods if given the option

    8. Poor payment timing is by far the biggest issue ad hoc payment receivers faced. With ad hoc payments comprising the majority of their AR, late payments can meaningfully hurt their bottom lines.

    25%

    Share of receivers who cited poor payment timing as their biggest issue with receiving ad hoc payments

    9. SMBs see instant payments as a solution for the biggest issue they face, as immediately available funds reduce the risk of late or poorly timed payments.

    44%

    Share of receivers who consider cash flow management the most important reason to select instant payments

    10. The average fee for receiving ad hoc instant payments is $9.40, suggesting vendors would be willing to pay well above average to receive funds instantly.

    $12.70

    Highest fixed fee the average vendor would be willing to pay to receive funds instantly

    Senders and Instant

    11. Both receivers and consumers want to use these faster payments far more than senders currently offer.

    44%

    Share of senders that provide instant options or only send payments instantly

    12. With only 44% of senders offering instant payment options, senders are aware they are not meeting the demand for these options. However, they are underestimating the extent to which they fall short.

    59%

    Share of receivers that senders perceive want to use instant payments

    About

    Ingo Payments is the money mobility company. Our mission is to give people and businesses instant, digital and secure access to their money. We provide embedded API and iframe-supported payment solutions and deliver fully digital, cloud-based platforms that bridge the gap between legacy payments infrastructure and new payments technologies to deliver modern, bespoke payment experiences. Whether it’s instant account funding, payments or payouts, businesses can count on Ingo to tailor our platform and services to meet their needs. Headquartered in Alpharetta, Georgia, Ingo employs more than 240 professionals and serves some of the largest brands in North America.

    PYMNTS INTELLIGENCE

    PYMNTS Intelligence is a leading global data and analytics platform that uses proprietary data and methods to provide actionable insights on what’s now and what’s next in payments, commerce and the digital economy. Its team of data scientists include leading economists, econometricians, survey experts, financial analysts and marketing scientists with deep experience in the application of data to the issues that define the future of the digital transformation of the global economy. This multi-lingual team has conducted original data collection and analysis in more than three dozen global markets for some of the world’s leading publicly traded and privately held firms.

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