The Instant Payments Digital Divide: Why Some Small Businesses Thrive and Others Struggle

Small -to medium-sized businesses (SMBs) rely on instant payments to improve cash flow, yet their adoption remains far from universal.

Industries with strong digital momentum, such as gaming and the gig economy, are leading the charge, while others reliant on legacy systems face persistent hurdles.

PYMNTS Intelligence research shows that the share of SMBs receiving ad hoc payments via instant methods surged from 20% in 2023 to 32% in 2024. However, this growth is not evenly distributed.

SMBs in digitally forward industries are 45% more likely to use instant pay as their most common method for receiving ad hoc or nonrecurring payments than those in less tech-savvy sectors. This disparity suggests that access — not just demand — plays a role in adoption rates.

SMBs cite faster access to funds as the primary benefit of these faster payments. However, adoption remains constrained by two challenges: cost and integration. Transaction fees prevent many businesses from switching, with 32% of SMBs avoiding instant payments due to the associated costs. Meanwhile, the limited availability of third-party integration tools makes implementation difficult, especially for SMBs with manual accounting processes.

Despite these obstacles, the trend toward faster payments is accelerating. Businesses that have automated accounts receivable (AR) processes are more likely to receive ad hoc payments instantly. Solutions like Trustly’s Pay N Play and QuickBooks’ Tap to Pay on iPhone help by making instant payments more accessible and reducing friction in adoption.

As industries continue to digitize, SMBs must assess whether their current payment strategies align with evolving financial realities. While some industries lag, the push for real-time payments is reshaping business operations. Those who adopt instant payments now will gain a competitive edge, ensuring financial agility in an increasingly digital economy. Learn more in April’s Money Mobility Tracker®.

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The “Money Mobility Tracker®,” a collaboration with Ingo Payments, explores how digitally forward SMBs lead in instant payment adoption and how industries with less digital momentum can overcome barriers to unlock the same benefits.

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