US and Europe SMEs ready to switch banks for offer of real-time payments

The majority of small and medium-sized (SMEs) business owners in the US and Europe would consider switching account providers for the offer of real-time payments, according to an online poll by YouGov, an international Internet-based market research firm, conducted on behalf of ACI Worldwide.

Over two-thirds (71%) of all respondents stated that if banks offered real-time payments capabilities, it would "encourage" them to switch providers. The research also shows that businesses increasingly recognise the value of fast, efficient and predictable payments to the overall success of their business.

For example, ranking in real-time is a priority for many SMEs. Of the respondents that find faster payments appealing, 71% said that they would find receiving payments from customers in real-time important, with 59% saying the same about paying vendors and suppliers in real-time. 43% of SME businesses surveyed said real-time banking services would be "essential" to the success of their business.

SMEs want new and innovative banking services and many have switched to new payment methods and providers in the last few years, a move which they say has been beneficial for their business.

In addition, payment delays are amongst the top frustrations of SMEs -- either reaching their own account or the accounts of vendors and suppliers are among the most cited frustrations amongst companies in the US and Europe (57% globally).

Barry Kislingbury, director solution consulting, immediate payments, ACI Worldwide said: “Delayed and unpredictable cash flow can significantly affect the success of businesses, particularly small ones. The real-time schemes currently being built in the US and Europe will empower consumers and businesses to send and receive real-time payments from their existing accounts, and will also provide a platform for banks to launch new services built around a real-time payments hub for today’s digital economy.”