Instant Payments Shield Businesses From Vendor Disruptions

The ability for large enterprises to disburse funds instantly has become a key strategic priority, especially when demands for immediate payments are high.

For businesses where a large share of ad hoc payments needs to be sent urgently, instant methods are evolving into a vital strategic tool. Enterprises with a high need for urgent ad hoc payments are significantly more inclined to adopt instant payment methods.

As detailed by PYMNTS Intelligence and Ingo Payments in the report “Instant Payments: A Strategic Tool for Vendor Relationships and Urgent Transactions,” businesses with elevated urgent payment needs are five times more likely to use instant payments to maintain strong vendor relationships. This necessity extends beyond mere operational efficiency; it is deeply rooted in the business need to avert disruptions, guarantee timely service or delivery, and, crucially, strengthen and safeguard positive vendor relationships.

Drawing on recent data from a survey of 200 large U.S. enterprises, several specific use cases stand out where instant payments address critical high-urgency demands:

Payments to Gig Workers: Gig economy workers rely on immediate payments to sustain their work and financial stability. This makes instant disbursements an essential feature for companies utilizing freelance or gig labor. Data indicates that 97% of payments sent to gig workers were deemed urgent.

Payments to Fuel Providers: Providers of fuel to trucking companies also have a very high urgency level for payments. The sources show that 97% of payments due to companies that provide fuel to trucking companies need to be sent urgently.

Tip Payouts to Tipped Service Workers: Hospitality service workers receiving tips represent another group with a significant need for urgent payment. According to the sources, 95.5% of tip payouts to service workers require immediate disbursement, while 96% for payments due on tips to hospitality workers were classified as urgent.

Payments to Vendors to Avoid Service Interruption: A critical driver for instant payment adoption, particularly among businesses with high urgent needs, is preventing vendors from refusing to provide goods or services until payment is made. Fifty-four percent of senders with high payment urgency needs would pay even more to send a payment instantly if a vendor refused delivery before payment.

Payments for Temporary or Seasonal Workers: One percent of payments for temporary or seasonal workers were deemed urgent by senders. Ensuring these workers are paid promptly upon completion of their tasks is essential for managing temporary workforces effectively and maintaining operational flow.