Identifying ‘Killer Use Cases’ in Small-Business Instant Payments

Seven years after the launch of The Clearing House’s RTP network and 15 months into the FedNow era, instant payments are proliferating, and small businesses and the bankers who serve them are searching for a set of “killer use cases” that will serve as a catalyst for widespread adoption. Many businesses are already experimenting with instant payments for such things as emergency payments to a supplier on a Sunday night, last-minute payroll adjustments, just-in-time inventory purchases, and large, specialized transactions. Yet awareness among the general small-business market remains low, and misunderstandings abound related to what “real-time” or “instant” payments actually entail, let alone how they could improve business operations. 

This Javelin Strategy & Research report draws on hundreds of open-ended responses from small-business owners about their current usage of instant payments and examines key examples in three categories: outgoing payments, incoming payments, and niche and cutting-edge use cases. And it provides recommendations for how banks, credit unions, fintechs, and vendors can communicate the value of instant payments and build them into the digital banking and payments experience. 

Key questions discussed in this report:

• How many small businesses are already using instant payments? 
• Do businesses understand the value of instant payments, including anytime availability and messaging capabilities? 
• What are the major use cases for instant payments today? 
• How can banks prepare for the future of instant payments, and what use cases will drive the most value for small-business customers?

Companies Mentioned:

American Express, Bank of America, Capital One, Chase, Federal Reserve, PayPal, Square, Stripe, The Clearing House, Wells Fargo