Insurance companies are increasingly embracing real-time payments for business-to-business (B2B) transactions, viewing them as essential to success.
More than two-thirds plan to increase the use of real-time payments for inbound transactions, citing speed as the driving factor, according to PYMNTS‘ survey.
80% of firms make real-time B2B payments, and 84% are receive these payments.
Large firms generating more than $1 billion in annual revenue are the most likely to have already implemented real-time payments to make and receive payments (see How Digital Trust, AI & IoT Technology Can Help Insurance Business?).
- 68%: Portion of insurance firms planning to ramp up real-time payments for inbound transactions that cite speed as a reason for doing so
- 64%: Share of insurance firms gearing up to introduce additional B2B payment features in the next 12 months
- 82%: Portion of small insurance firms citing implementation costs as the primary barrier to adopting real-time payments
Speed and ease of use are the primary reasons cited by insurance companies for adopting real-time payments (see Global InsurTech Data Highlights 2023). Firms planning to increase their use of real-time payments for inbound transactions cite speed as the top reason, at 68%.
64% of companies that expect to use real-time payments more for making payments attributed the decision to ease of use and convenience.
81% share of insurance firms likely to collaborate with FinTechs for real-time payments innovation.
Insurance firms are looking to collaborate with FinTechs to enhance their real-time payments offerings.
81% of insurance companies will likely partner with FinTechs for future real-time payments innovations.
Additionally, 74% of insurance firms plan to introduce additional real-time B2B payments features in the next 12 months, pointing to a strong focus on innovation in their B2B payment practices.
Real-time payments have emerged as a top choice among insurance firms for making B2B transactions.
Still, these firms must understand how quickly the state of play is changing and the importance of keeping up with innovations, as real-time payments are likely to become the leading form of payments.
Edited by Peter Sonner