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A transaction that clears before you close the tab. That's the promise of real time payments.
For businesses navigating complexity—regional expansion, high-volume commerce, fragmented buyer preferences—this isn't a technical upgrade. It's a structural shift. Understanding what real time payments bring to the table helps leaders across finance, operations, and engineering recalibrate how money moves and value is captured.
What are real time payments?
Real time payments refer to digital transfers that settle and confirm in seconds, available continuously—every hour, every day. Unlike older systems that queue payments in batches, real time payments bypass the waiting game entirely.
They rely on next-gen payment infrastructures designed for direct, account-to-account transactions. Networks like India's UPI, Thailand's PromptPay, and the FedNow Service in the U.S. are active examples.
Usage is climbing rapidly. In 2022, global volumes surged past 195 billion. By 2027, over a quarter of all digital payments may be happening in real time.
Real time payments vs ACH
ACH transfers are standard in many markets, particularly the US. But they're slow by design—funds may not clear until the following day, and weekends are off the table.
Real time payments differ sharply:
- They offer immediate settlement.
- They're accessible round-the-clock.
- They provide finality, reducing disputes and errors.
For time-sensitive use cases—like gig payouts, flash sales, or last-minute travel bookings—ACH lags. Real time wins.
What Heads of Payments need to know
Payment leaders monitor performance obsessively. And they know that milliseconds matter. For them, real time payments aren't theoretical—they're operationally decisive.
Capture more sales
Higher approval rates come from cutting down on lag. Real time rails reduce the window where customers abandon, time out, or face unclear error states.
Solve fragmentation
If your current setup involves juggling multiple gateways, regional acquirers, or outdated APIs, real time systems offer a reset. Through a single connection, you can route transactions across domestic RTP networks with built-in failover logic.
Meet local expectations
In regions like Southeast Asia or LATAM, buyers expect methods like UPI or PIX. These are real time by default. Adding them doesn't just check a box—it recovers otherwise lost conversions.
Gain instant visibility
Many RTP systems come with real-time monitoring tools. Payments managers can view transactions as they happen—no waiting for batch reconciliations or delayed error codes.
Avoid integration sprawl
With a well-built real time payments API, the dev lift is modest. One endpoint can handle multiple flows—peer-to-peer, recurring, disbursements—cutting down on maintenance over time.
ROI and cost-benefit analysis for CFOs
Finance leads don't adopt new systems lightly. Every change must tie back to cash flow, risk, or efficiency. Here's where real time payments stand out.
Shorter settlement cycles
Cash hits accounts faster, reducing the need for float or external credit lines. This tightens cash flow and opens room for reinvestment.
Lower total payment costs
Because real time payments often bypass traditional card networks and intermediaries, businesses can reduce per-transaction fees—especially across borders.
Reduced dispute exposure
With finality built into the system, there are fewer chargebacks and reversals. That means lower overhead in fraud handling and reconciliation.
Improved working capital allocation
Instead of waiting for batches to clear or funds to pool, money is accessible when it's earned. That predictability allows better planning and faster response to market shifts.
FX risk minimisation
Some RTP networks support multi-currency transactions. This reduces the need for forced conversions at unfavourable rates and can limit exposure to currency swings.
API integration: What developers should look for
Real time payments need robust technical execution. Look for platforms that provide:
- A flexible real time payments API with clear documentation
- Webhooks for payment status updates
- Multi-region data support
- Minimal downtime, even during upgrades
If your tech stack includes microservices or you operate across markets with different regulations, ask about regional data handling and scalability.
Real time payments networks: Aligning to buyer expectations
Different markets are built on different rails:
- FedNow (US)
- UPI (India)
- FPS (UK)
- SPEI (Mexico)
- PromptPay (Thailand)
If you serve buyers in these regions, offering their native real time methods isn't optional—it's a growth lever.
Bottom Line
Real time payments aren't just about speed. They're about alignment. With buyer expectations. With operational efficiency. And with financial strategy.
For CFOs, they unlock liquidity and reduce cost. For payments managers, they fix conversion gaps and complexity. And for developers, they offer a single, scalable layer for transactions that keep up with the pace of the business.
Are you ready to rewire how your business gets paid? Let's Talk.
