Real-time payments: Empowering today’s workforce with speed and flexibility

Real-time payments (RTP) are changing how individuals access their earnings, offering instant payouts and financial transactions that meet the needs of employees, gig workers, and the self-employed. Businesses across industries are adopting RTP to provide immediate access to funds, addressing the growing demand for financial flexibility. The global instant payments transaction value is projected to grow from $22 trillion in 2024 to over $58 trillion by 2028, showing rapid adoption and demand for faster financial solutions.

Our latest research paper, Real-time payments for an empowered workforce, provides insights into how businesses can leverage RTP and complementary push-to-card solutions to stay competitive.

Expectations of today’s workforce are changing

The gig economy is driving demand for faster payouts, as gig workers rely on immediate access to earnings to cover daily expenses. With gig economy payments expected to grow from $415 billion in 2023 to $920 billion by 2031, the need for instant financial access is clear. Freelancers and contract workers often face irregular income streams and unexpected expenses, making instant payments essential. Platforms offering immediate access to earnings are better positioned to attract and retain gig workers, ensuring workforce stability and loyalty.

Traditional payroll employees may not require instant access to wages, but as financial demands increase, businesses are recognizing the need to offer greater flexibility. The widespread adoption of real-time payment systems in Europe, such as the SEPA Instant Credit Transfer scheme processing over 100,000 transactions daily, indicates a shift towards faster payroll solutions that better meet employees' expectations.

Workers now expect financial tools that allow them to access their wages on demand, enabling them to cover emergencies and daily expenses without resorting to high-interest credit options. Businesses that fail to meet these expectations risk losing valuable talent to competitors that offer more flexible payment options. Real-time payroll solutions enable businesses to pay workers immediately after their shifts, providing a competitive advantage in retaining and attracting employees. To support this shift, businesses are also exploring push-to-card solutions, such as Visa Direct, to offer employees more flexible payment options that align with their financial needs.

Earned Wage Access is gaining traction

Earned Wage Access (EWA) gives employees access to their accrued wages before their scheduled payday. This solution helps workers manage their finances, reducing reliance on high-interest payday loans and credit card debt. Studies show that financial instability affects productivity, with employees experiencing high stress due to financial constraints. Employees using EWA services save an average of $50 per month on overdraft fees and avoid costly payday loans.

EWA benefits both employees and businesses, improving employee satisfaction and retention. 90% of employees are more likely to stay with an employer offering EWA, making it a valuable tool for long-term workforce planning. Additionally, offering EWA can reduce absenteeism and boost morale, creating a healthier work environment.

When paired with push-to-card solutions, EWA can provide instant payouts that help businesses meet workforce expectations without the complexity of integrating with multiple regional RTP networks.

Navigating challenges in real-time payments adoption

Despite the benefits of RTP, businesses may struggle with regional limitations, as many networks are designed for domestic use only and do not support seamless cross-border payouts. This can lead to operational inefficiencies, delayed payments, and inconsistent experiences for employees working across different regions. To address these challenges, businesses need solutions that can bridge gaps between regional RTP networks and provide a more consistent approach to payroll disbursements.

Nuvei’s push-to-card solution, powered by Visa Direct, helps businesses overcome these challenges by offering a secure, cost-effective alternative that ensures accurate, timely payouts across global markets. With capabilities across key markets, including Australia, the UK, and the US, we provide businesses with the infrastructure they need to stay ahead. Our solution offers a unified global API, rapid implementation, and enhanced payout accuracy measures to simplify compliance and operational complexities.

Businesses that leverage these solutions can benefit from operational efficiencies and improved workforce engagement without the risks traditionally associated with fragmented regional RTP systems.

Conclusion

Real-time payments are becoming essential for businesses to stay competitive and meet changing workforce expectations, particularly in the gig economy, where instant access to earnings is crucial. However, businesses operating across multiple regions need a solution that offers interoperability and consistency. Push-to-card solutions complement traditional RTP networks, enabling businesses to offer employees faster, more reliable access to their earnings—regardless of location.

Download our latest whitepaper, Real-time payments for an empowered workforce, to explore how RTP and push-to-card solutions can empower your organization and ensure a resilient, future-ready payroll strategy.

‍

Originally published by The Paypers