Retail Giants Seek FinTech Real-Time Payments Partnerships 

Large retailers with annual revenues exceeding $100 million are increasingly turning to FinTech companies to establish real-time payment partnerships, as revealed in the PYMNTS Intelligence and The Clearing House collaborative report, «Corporate Changes in Payment Practices: The Retail Industry is Ramping Up Real-Time Payments.» The report, based on responses from 125 retail executives surveyed from June 6 to June 26, 2023, highlights the growing importance of real-time business-to-business (B2B) payments in the retail sector.

A significant 85% of these large retailers are planning to collaborate with FinTechs to enhance their real-time payment capabilities in the coming year. This shift towards real-time payments reflects a broader trend driven by the increasing demand for faster, more secure payment methods in the retail industry.

Notably, almost all retailers with annual revenues exceeding $100 million have already adopted real-time B2B payments. Among these, 81% consider real-time payments to be highly important for their operations. The enthusiasm is particularly strong among retailers generating between $100 million and $500 million in annual revenue, with 89% regarding real-time payments as highly important.

Real-time payments are not just about speed for these retailers. They also recognize the added benefits, with 89% citing enhanced buyer-supplier relationships as a significant advantage. Moreover, the data protection and security features of real-time payments are viewed as key advantages.

The report underscores that real-time payments are no longer just a quick payment method but a strategic imperative for the retail sector. A total of 81% of retail firms are planning to enhance their real-time payment offerings in response to growing demand. However, when it comes to collaboration, retailers are more inclined to partner with FinTechs over traditional banks and card networks, with 85% of them considering such partnerships. In contrast, less than half are contemplating in-house solutions.

The retail industry’s embrace of real-time payments reflects a shift in B2B payment preferences, driven by the need for both speed and security. The findings of this report highlight the increasing significance of real-time payments for large retailers and their intent to collaborate with FinTechs to stay at the forefront of payment innovation.