Real-Time Payment RTP is also referred to as immediate or instant payment. This simply means a fast payment. It has brought a change in the baking operation and payment system of the merchant as well. As per the survey, about 65% of the merchants are now interested to follow RTP. The smooth merchant payment solutions are the big reason behind this shift.
Here in this article, we will learn about the influence of real-time payment on the business. Additionally, we will find out the answer to why this process is in high demand? What compels merchants to adopt it? But before going ahead let’s expose something more about RTP
- The payment is credited to the receiver’s account as soon as it is debited from the payer’s account. Here the merchant wallet app is playing a big role.
- Most of the solutions are based on the ISO 20022 standard
- The status and confirmation of the payment is also available immediately
- The payment can be made within 24 hours a day
In the real-time payment also credit and debit card, P2P app and digital wallets are used to make the payment. The online transaction is done through the Automated Clearing House (ACH). Here payment is done in batches. So till the settlement process is complete, funds are not available.
It makes the cashless payments solution simple and easy. It is because RTP is fully integrated with the technology.
Why is Real-time payment better than traditional methods?
The instant transfer of the fund is possible in the RTP or UPI. There is no additional registration or signup needed in this kind of process by the customer side. This enables the customer to make the payment without spending much time. The same applies to the merchant side.
The acknowledgement of the payment is possible with the help of real-time payment. The sender and the receiver get notified via SMS or any other means. This creates a kind of trust between the parties. It makes the payment method strong enough.
It makes the transaction fast and secure. This is the reason most of the professionals including eCommerce also adopt real-time payment. Even in the top-up bill payment solution, RTP is playing a vital role.
How RTP is beneficial for the merchant?
The integration of the merchant payment platform is beneficial in several factors. From the payment method perspective, it helps in affecting the overall growth of the merchant profession. Let’s have some factors which present the benefit story of this process.
Cut down the cost:
The main benefit of integrating real-time payment is cutting down the cost. Instead of cheques and other costly methods, RTP is a cost-effective method. It is a cost-saving operation for the merchants.
The sender and the receiver may have a conversation about the payment. This makes the fast and simple approach to exchanging the talks. Employees need not interrupt the workflow because all issues are sorted out in the online conversation. The automated process reduces the cost because there is no expenditure on the back office process or any other additional method.
Additionally, RTP always brings fast payment thanks to its advanced technology. Within a second the transaction is made and this saves the time. When making the fast payment it also influences the operation of the merchant. Thus it proves to be best in the time-saving.
The other most important factor for the payment in the merchant is security. When it is about RTP, the security of the transaction is surely taking place. It also reduces fraud risk.
Most of the time there is a risk of when the transaction is made with unfamiliar buyers. This kind of risk can be easily controlled or vanish with real-time payment. Ultimately, it also boosts the customer relationship.
Reduce the chance of fraud:
With the help of real-time payment, the fraud activity can be reduced to the level. As it is based on the technology it gives out a positive impact on the business. Using a peer to peer payment app, the transaction flow is smooth. With the real-time payment method, the payment activity is tracked with all the latest technology. Both sender and receiver get the confirmation about the payment on the immediate time.
When it comes to the real-time payment method, merchants avail the 24/7 time support. This makes the payment workflow easy. Any issue generated at the time of payment is resolved through live support. This is another advantage which merchants avail.
Real-Time payment proves to be like a boon for merchants. Most of the professionals are following this approach. Advance steps are taken to improve the overall procedure. In the future, it can hope that other advanced features will be integrated.
Hope you get useful information from this article. We would like to welcome your thoughts in the comment section.