Realizing the Pledge: Transforming Real-Time Transactions into a Tangible Reality
In the fast-paced world of work, where instant gratification is highly valued, the transition to real-time payments is not just a step forward, but a necessary one. This shift aims to meet the demands of workers for on-demand payments, a crucial aspect in the gig economy.
Real-time payment networks should be equipped to handle cross-border payments in the local currency, making international transactions seamless and efficient. To ensure instant payments and regulatory compliance, companies often partner with third-party payments providers.
However, it's important to note that instant payments are not immune to delays. Minimum earning requirements or data processing errors can cause temporary hold-ups. To mitigate these issues, compliance checks are run by the payments processing partner on every transaction to ensure global compliance.
Real-time payments are proving to be a valuable tool in the gig economy. They offer numerous benefits, including increased employee satisfaction due to faster access to earnings and reduced payroll complexity. In fact, most people keep an average balance of more than $200 in their digital wallets like Venmo.
Despite healthy adoption, many gig workers still do not have access to instant payments. To address this issue, companies can implement real-time payment networks that issue instant payments to workers. By adopting modern, ISO 20022-compliant payment platforms, businesses can integrate with major instant payment networks like The Clearing House’s RTP network and the Federal Reserve’s FedNow Service.
These platforms typically offer API-driven, centralized payment orchestration hubs that ensure 24/7 real-time processing, fraud detection, compliance monitoring, and smart routing across multiple payment rails without the need to replace existing banking infrastructure.
Key steps in implementing real-time payment networks include choosing a consolidated payment hub with multi-network access, integrating with existing core and digital systems, implementing ISO 20022 messaging standards and APIs, incorporating fraud detection and regulatory compliance controls, developing a strategic business case, and focusing on employee-centric use cases.
In summary, by leveraging established, regulatory-aligned platforms, businesses can deliver instant payments to workers efficiently while meeting security and regulatory standards. This approach not only attracts more gig workers and affiliates but also allows companies to remain competitive in the gig economy by delivering a frictionless payment experience.
Sources:
- Citizens Business Bank & Alacriti’s Orbipay Hub deployment enabling RTP and FedNow access with fraud controls and ISO 20022 messaging ([1])
- Dwolla’s API-driven, multi-network RTP orchestration with FedNow and RTP networks ([2])
- Volante’s ISO 20022-native RTP solutions with AI fraud detection and real-time exception handling for mid-tier banks ([3])
- The Clearing House insights on RTP adoption benefits for payroll and employee payments ([4])
- The real-time payment market is forecasted to grow 63% annually through 2027, reaching $511 billion in annual transactions ([5])
- Companies that prioritize instant payments may attract more gig workers and affiliates ([6])
- Real-time payments, once past the learning curve, can provide numerous benefits to businesses ([7])
- Funds from real-time payments can be automatically available to workers through a digital card or wallet ([8])
- Digital payments have become a standard financial tool ([9])
- Companies that adopt real-time payments can deliver a frictionless payment experience and remain competitive in the gig economy ([10])
- Regulatory compliance is a significant burden for companies, but the payments network provider should take on that responsibility ([11])
- Widespread adoption of real-time payments can lead to ubiquitous updates to payroll systems and cash flow management ([12])
- Venmo entered the mainstream sphere in 2015 ([13])
- As of 2025, Venmo hosts 92 million active users ([14])
- Companies that can deliver instant payments to workers may see increased retention and worker loyalty ([15])
- A quality real-time payment network allows businesses to make immediate payments in any amount, including as low as $0.99 ([16])
- To ensure seamless and efficient international transactions in the business world, embracing technology is crucial, especially in real-time payment networks that handle cross-border payments in local currencies, aiding the growth of global finance.
- In the rapidly evolving gig economy, technology plays a pivotal role in providing faster access to earnings, as the adoption of real-time payment networks can significantly increase employee satisfaction and reduce payroll complexity, giving companies a competitive edge.
