Guide to Real-time Payments in 2025

Are you tired of waiting days for payments to clear and facing unpredictable cash flow that hinders your business? Traditional payment methods create frustration for both businesses and consumers—leaving you with delayed transactions, increased administrative hassles, and lost opportunities.

In this blog, we’ll explain:

And here’s why you should listen: a recent study forecasts that the instant payments market will surge from $22 trillion in 2024 to over $58 trillion by 2028—a growth of 161%. With our deep industry expertise and clear, actionable insights, you’ll be well-equipped to navigate the new era of payments and transform your financial operations.

How Real-Time Payments Work?

Real-Time payments streamline the entire process of transferring money by moving away from traditional batch processing. Here’s a simple, step-by-step look at how Real-Time payments work:

1.Initiation:

The process starts when you decide to send money—whether through a mobile banking app, online portal, or at a physical location. You enter the recipient’s details (like account number or QR code), and the payment request is triggered immediately.

2.Authentication & Authorisation:

Your bank quickly verifies your identity using secure methods such as passwords, biometrics, or two-factor authentication. Simultaneously, it checks whether you have sufficient funds to cover the transaction. Once everything is in order, the transaction is approved.

3.Processing & Settlement:

Instead of waiting for hours or days, the payment instruction is sent through a dedicated network that processes transactions individually and continuously. Funds are transferred almost instantly, so the recipient’s account is credited within seconds—often in less than 10 seconds.

4. Notification:

Both you and the recipient receive immediate confirmation of the payment, ensuring transparency and giving you confidence that the funds are now available.

This seamless flow of Real-Time payments not only accelerates cash flow management but also reduces the risk of errors and delays that are common in traditional payment systems.

Benefits and Challenges of Real-Time Payments

Benefits of Real-Time Payments

Switching to Real-Time payments comes with several advantages, making transactions smoother, faster, and more reliable for businesses and consumers alike.

Instant Cash Flow Management

• Businesses no longer have to wait for funds to clear, improving liquidity.
• Immediate access to cash allows better financial planning and faster reinvestment.

24/7 Availability

• Unlike traditional bank transfers that operate within business hours, Real-Time payments work around the clock, including weekends and holidays.
• This is especially beneficial for e-commerce, gig economy workers, and international transactions where time zones vary.

Better Customer Experience

• Consumers can make payments in seconds, whether shopping online or paying bills.
• No more waiting for direct deposits or refunds to process—everything happens in Real-Time.

Reduces Payment Failures & Chargebacks

• Real-Time transactions confirm fund availability instantly, reducing the risk of declined payments.
• Eliminates chargeback risks commonly associated with delayed settlements.

Stronger Security & Transparency

• Unlike traditional batch transactions, which can be intercepted or modified before clearing, Real-Time payments are verified instantly, reducing fraud risks.
• Immediate confirmation ensures complete transparency between payer and payee.

Challenges of Real-Time Payments

While the advantages are compelling, Real-Time payments introduce some challenges businesses must address:

Higher Fraud Risks Due to Instant Transfers

• Because transactions happen instantly, fraudulent activity can be harder to reverse.
• Businesses and banks must invest in fraud detection tools that analyse transactions in Real-Time.

Upfront Technology & Infrastructure Investment

• Implementing Real-Time payment capabilities requires upgrading existing banking and payment systems.
• This can be costly and time-consuming for businesses that rely on outdated technology.

Regulatory & Compliance Complexities

• Different countries have varying regulations for Real-Time payments.
• Businesses operating globally must ensure compliance with local Real-Time payment laws.

Interoperability Issues

• Not all banks and financial institutions support Real-Time payments, making it difficult for seamless transactions across different networks.
• Standardisation across different payment rails is still evolving.

Despite these challenges, the global Real-Time payments market is growing rapidly, with businesses and financial institutions racing to keep up with demand.

Global Real-Time Payment Networks

Real-Time payments are not just a trend; they are becoming the standard for digital transactions worldwide. Many countries have built their own Real-Time payment networks, enabling faster, more efficient financial transactions. Below are some of the most important Real-Time payment systems across different regions.

1.Europe: SEPA Instant & TIPS

• SEPA Instant Credit Transfer (SCT Inst): Covers 36 European countries, allowing payments within 10 seconds, with a maximum transaction limit of €100,000.
• TARGET Instant Payment Settlement (TIPS): Developed by the European Central Bank, enabling Real-Time settlements in central bank money across Europe.

2.United Kingdom: Faster Payments (FPS)

• One of the oldest Real-Time payment systems, launched in 2008.
• Supports instant bank-to-bank transfers and is widely used for payroll, bill payments, and peer-to-peer transfers.

3.United States: FedNow & RTP Network

• FedNow (Launched in 2023): The Federal Reserve’s first Real-Time payments service, enabling instant transfers between banks.
• RTP Network (by The Clearing House): Allows businesses and consumers to send and receive payments instantly, competing with traditional card networks.

4.India: Unified Payments Interface (UPI) & IMPS

• UPI: The most widely used Real-Time payment system globally, processing over 10 billion transactions monthly.
• IMPS (Immediate Payment Service): Allows instant interbank transactions 24/7, supporting mobile and online payments.

5.Brazil: Pix

• Pix has surpassed credit and debit cards in Brazil, processing over $338 billion in transactions per month.
• A new feature, Pix Automático, will automate recurring payments for subscriptions and utility bills, further accelerating adoption.

Who Can Benefit from Finexer’s Real-Time Payments?

1.Fintech Startups & SaaS Companies

• Enable instant payouts, user-to-user transfers, and Open Banking-powered payments with minimal transaction fees.

2.E-Commerce & Marketplaces

• Improve checkout conversions with direct bank payments, avoiding card processing fees.
• Offer instant refunds to customers, enhancing the buyer experience.

3.Payroll & Gig Economy Platforms

• Process Real-Time payroll for gig workers and freelancers without waiting for batch payments.
• Reduce processing time and enhance financial flexibility for workers.

4.Accounting & ERP Platforms

• Integrate instant invoice payments and bank transfers directly into financial workflows.
• Reduce reconciliation time with automated Real-Time transaction matching.

How Finexer Provides Cost-Effective Real-Time Payments

Finexer is built for businesses looking for instant, low-cost transactions without the overhead of traditional payment processors.

1.Direct Access to Faster Payments

• Unlike traditional providers that route payments through multiple intermediaries, Finexer provides direct access to the UK’s Faster Payments network, ensuring lower transaction costs and faster processing.

2.Transparent, Predictable Pricing

• Many payment providers have complex fee structures based on transaction volume, location, and time of processing.
• Finexer keeps it simple, offering a flat, transparent pricing model that eliminates hidden fees.

3.Open Banking-Powered Instant Payments

• Finexer integrates directly with UK banks via Open Banking APIs, allowing businesses to send and receive Real-Time payments without card fees.
• By bypassing traditional card networks, businesses can save up to 80% on transaction costs.

4.Instant Account Verification and Settlement

• Traditional bank transfers require businesses to manually verify account details, increasing delays and fraud risks.
• Finexer offers Real-Time account verification to ensure secure and error-free transactions before payments are processed.

5.Scalable API for High-Volume Transactions

• Whether you’re processing hundreds or millions of transactions, Finexer’s API is built to scale without increasing costs per transaction.
• Businesses can automate Real-Time payments, reducing manual processes and operational inefficiencies.

Final Thoughts

Real-Time payments are no longer optional. They are becoming the global standard for financial transactions.Businesses that embrace Real-Time payments early will gain a competitive edge with:

• Faster cash flow
• Lower transaction costs
• Improved customer experience
• Stronger fraud protection

Finexer is here to help businesses integrate Real-Time payments seamlessly with Open Banking APIs. Whether you are a fintech startup, e-commerce business, or enterprise, adopting Real-Time payments can transform your financial operations and future-proof your business.