88% of Small Businesses Would Pay Fees to Be Paid in Real Time

Banks know real-time payments keep cash moving, yet they continue to tilt these services toward large enterprises.

The March/April edition of the Real-Time Payments Tracker Series, “Small Businesses, Big Demand: The Case for SMB-Focused Real-Time Payments,” found that small- to medium-sized businesses (SMBs) are not only demanding faster access to money, but they are also willing to pay for it. In an era where banks fret about thinning margins, that willingness represents a rare chance to boost fee revenue and lock in loyalty from a vast customer segment.

The report outlines the gap between what banks provide and what SMBs need. Despite encompassing more than 90% of U.S. businesses, SMBs remain underserved in access to instant payments. Large corporations can count on real-time rails at most institutions, but fewer than two-thirds of small firms can say the same.

That leaves SMBs turning to FinTechs that can move money faster and more predictably. For banks, the imbalance is more than a missed service line; it’s a missed chance to cement relationships with customers who face daily liquidity pressures.

Among the report’s most striking findings are perceptions around fraud in real-time payments and how they diverge from reality:

• When banks fail to offer faster payments to small businesses, 61% of SMBs report turning to FinTechs, reflecting a perception that nonbank providers deliver not just speed but better fraud protections.
• Thirty-three percent of SMBs say they would switch financial institutions specifically for access to real-time payment options. That migration risk suggests small firms trust that fraud controls in real-time rails are robust enough to justify a move.
• While fraud remains a concern, the immediate pain point is liquidity, as 77% of SMBs operate with barely sufficient cash reserves. Delays in receivables often feel more threatening than fraud exposure, underscoring why instant settlement is a priority.

The broader findings underscore the urgency. Three in four SMBs experience late receivables, while 8 in 10 face payment-related difficulties, often from customers who pay slowly. Ad hoc transactions, which are one-off or irregular payments, now represent more than half of small business receivables. Delays in those inflows can stall payrolls, supply orders or rent.

Banks themselves admit real-time payments may matter more for SMBs than for their largest clients. They acknowledge that faster cash flow is disproportionately beneficial to firms operating on tight margins. Yet most banks still reserve the best instant payment capabilities for big companies.

The report also highlights where banks could recast the economics. It found that 88% of the smallest SMBs, or those generating less than $100,000 in annual revenue, say they would accept percentage-based fees for real-time access.

Larger SMBs, by contrast, prefer fixed fees. Either way, businesses that often resist new charges are signaling they will pay for certainty. That is not just demand; it is pricing power banks rarely enjoy.

The data leaves banks with a choice. They can continue prioritizing enterprises that already have multiple banking partners, or they can cultivate SMBs willing to pay for speed, reliability and balance sheet health. The risk of inaction is attrition to FinTechs, higher replacement costs and eroded trust.

First movers in SMB-focused, real-time payments stand to win not only fee revenue but the loyalty of businesses that form the backbone of the economy.

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