Majority of Businesses Still Struggling with Payments Delays – Research Study

Rapyd, the global fintech firm, recently released its report, “2024 State of Payments: High-Opportunity Industries.”

This comprehensive study dives into “the evolving landscape of cross-border payments, focusing on the needs of fast-growing industries such as online gaming, content creation platforms, online travel, marketplaces, and e-commerce.”

While these industries offer high-profit potential, businesses “within them face unique payment challenges, including delays, fraud, and complex compliance requirements.”

To gain a deep understanding of the current landscape and future outlook, Rapyd conducted a global research study “surveying more than 1,000 business owners and payment decision-makers from a variety of high-opportunity industries, across ten key markets: Brazil, Canada, France, Germany, Italy, the Netherlands, Spain, Singapore, the UK and the US.”

The study explores how B2B and B2C businesses “in these industries accept payments, disburse payouts, and view future payment trends.”

  • Speed & Convenience Top Priority: The report finds that a staggering 73% of businesses in high-opportunity industries grapple with payment delays ranging from 2-15 days, hindering cash flow. As a result, speed and convenience remain the top payment priorities. 38% of businesses surveyed prioritise fast and easy transfers, highlighting the need for solutions that address both speed and reliability.
  • Delays Disrupt Businesses: Nearly half (45%) of these businesses struggle with cash flow due to payment delays, according to the Rapyd report. This underscores the urgency for faster payment solutions, with many businesses (32%) seeking a simple integration process alongside swift transactions.
  • Businesses Want Increased Authorization Rates: Beyond speed and convenience, the report finds that authorisation rates remain a concern for many businesses. A select group of businesses state that improved authorisation rates matter, with 1 in 6 businesses wanting their payment provider to offer solutions that minimise declined transactions.

Key Findings:

  • Speed & Convenience Reign Supreme: Businesses prioritise frictionless payments (38% prioritise speed of payments).
  • 73% Struggle with Delays: Rapyd’s report finds 73% of businesses in high-opportunity industries face payment delays (2-15 days), hindering cash flow.
  • Fraud Prevention Remains Crucial: With 25% of businesses citing it as a key factor, robust fraud management is essential.
  • Real-Time Payments on the Rise: 38% of businesses anticipate a surge in RTP adoption for faster settlements and improved cash flow.
  • AI Combats Evolving Fraud: The report emphasises the value of AI in mitigating fraud, particularly difficult-to-detect tactics.

The report highlights the growing adoption of two transformative technologies “that are reshaping the future of high-opportunity industries:”

  • Real-Time Payments (RTP): 38% of businesses surveyed anticipate a spike in RTP adoption in the next 12 months. RTP offers significant advantages over traditional methods, with faster settlement times leading to improved cash flow and wider access to capital.

David Rosa, Rapyd’s General Manager of Disburse, points out:

“Payment delays are a significant pain point for both B2B and B2C businesses, with 26% reporting them as a major challenge. Real-time payments and payouts can significantly improve the payment experience for a variety of high-opportunity industries that need to collect and send payments to businesses and consumers.”

AI-Powered Solutions: AI plays a “critical role in fraud prevention, risk management, and streamlining compliance checks.”

The report emphasizes the value of AI in “mitigating fraud, particularly difficult-to-detect tactics.”

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