Money that gets stuck on the way for several days is a thing of the past. Today payment technologies make it possible to receive payment in seconds, instantly turning a sale into working capital.
After reading this article, you will learn about key technologies, advantages, hidden nuances and what to pay attention to when choosing a service.
A system for transferring funds between accounts that is completed in real time, 24/7, is called an immediate payment. Unlike classic bank operations that are processed in batches once a day, here transaction is carried out and clearing happens in seconds. This means that recipient gets the money to their account almost at the same second when the sender make the payment.
Such speed has become a driver for new corporate models, especially in the sphere of freelancing, online trade and delivery. The possibility to send money and receive it without delays removes cash gaps and reduces the need for loans for working capital.
To make payments immediately, systems use special protocols such as SEPA Instant in Europe or Faster Payments in the United Kingdom. Please note, that to make a transfer you need the correct account and name of the recipient. Usually there is a limit on the amount of one transaction, as well as a daily limit. Value of the transfer must be within the available balance so that the operation goes immediately.
The main characteristics of such payments are:
This makes the service a reliable option for urgent settlements.
Immediate access to money significantly improves cash flow, the vital indicator of any company. The traditional cycle “sale – waiting for incoming funds – payment to suppliers” is compressed to one day.
Here is how it happens in practice:
Such operational control over liquidity becomes a key advantage in a dynamic market.
Behind the simplicity for the user there is a complex technological infrastructure. It provides safe and uninterrupted transmission of financial data between banks in real time.
At the core there are dedicated payment systems (RTP – Real-Time Payments) that work in parallel with traditional ones. When a transfer is initiated, the system in 24/7 mode checks the data, reserves funds on the sender’s account and directly credits them to the recipient’s account. The whole process, including interbank clearing, takes just a few seconds.
A main role is played by API (Application Programming Interfaces), which allow business applications to connect directly to these payment networks. It is through API that a service can send a request for a transfer, check the status and receive confirmation. This removes manual intervention.
Payment apps act as a convenient front end to complex banking systems. For companies they become a tool to manage finances and fast payouts. A user can select a contact from the list, enter an amount and tap a button to send money.
The main functions of payment apps are:
Using such mobile solutions makes financial operations simple and effective.
Like any technology, immediate payments have two sides. Understanding both helps to make a balanced choice.
The main advantage is acceleration of money turnover. For small companies it is a question of survival, for large corporation a question of efficiency of scale.
Comparison of impact on different types of business:
Thus, the benefits are obvious for everyone, but the scale and specifics of implementation differ.
One has to pay for speed. Fees for immediate transfers are usually higher than for standard ones. There are also limits on the amount of one operation and on daily volume. Please note that not all banks and not all countries support.
Security (safe) is an important question. Although systems use advanced encryption, the risk of fraud remains because of the irreversibility of transactions. That is why the correct account number and name of the recipient should always be checked before making the payment. Two-factor authentication has become a standard for protection.
There are many solutions on the market. To choose a suitable one, it is necessary to evaluate it by specific criteria that correspond to existing processes.
Before connecting a service, it is necessary to collect key information. This helps to avoid hidden fees and technical problems.
Order of actions at the selection stage:
Such an approach makes it possible to take a well-grounded decision.
A good app goes beyond simple money transfer. Its value for companies is defined by functionality.
Mandatory functions:
The presence of ready integrations (API) with e-commerce platforms and accounting systems makes it possible to create a seamless ecosystem. Solutions that offer a payment gateway with instant settlement, like the Carteza service, are especially valuable, because they shorten the cycle from sale to receiving profit.
The trend toward faster settlements is irreversible. Technologies continue to develop, offering companies even more possibilities.
Several trends define the future of the industry. Payment apps seek to become super-apps that combine transfers, accounting and lending. Demand for full transparency of payment status is growing. Development of international real-time systems will simplify global trade for startups.
The nearest innovations will be connected with automation. Implementation of payments through the Internet of Things (IoT) is expected, when a device will be able to initiate payment on its own. Artificial intelligence will be used to manage cash flow and prevent fraud.
The concept of programmable money, where conditions of use can be attached to transferred funds, will open new horizons for the B2B sector. The future belongs to solutions that make the movement of money intelligent.
