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Real-time payments: A revenue opportunity for mid-sized banks
Thought Leadership· 3min March 13, 2025
For many mid-sized banks, real-time payments (RTP) still feel like a technological challenge rather than a business opportunity. The perception that RTP is complex, expensive, or primarily suited for large institutions has kept many banks from fully exploring its benefits. However, in reality, RTP is not just an operational upgrade—it is a revenue-generating tool that can help banks retain customers, attract new business, and improve efficiency.
As financial institutions look to remain competitive in an evolving payments landscape, RTP presents an opportunity to differentiate their offerings, serve high-value customers more effectively, and drive new streams of non-interest income. Banks that embrace RTP now will be well-positioned to meet growing demand, strengthen their market position, and unlock cost savings that directly impact the bottom line.
How RTP Creates New Revenue Opportunities for Mid-Sized Banks
Real-time payments are not just about speed—they open the door to new banking products and services that enhance customer value and generate fresh revenue streams. Many of the most innovative use cases for RTP are already transforming the way businesses and individuals handle money, and mid-sized banks have a prime opportunity to capitalize on these trends.
Earned Wage Access (EWA): Meeting the Demand for On-Demand Pay
One of the most compelling use cases for RTP is earned wage access (EWA)—a service that allows employees to access a portion of their earned wages before payday. Traditionally, employees must wait for scheduled payroll cycles, but with RTP, they can receive their wages instantly at the end of a shift.
For banks, this presents a significant opportunity to partner with employers and payroll providers to offer on-demand wage disbursements. By enabling RTP-powered payroll solutions, banks can:
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Attract and retain corporate clients looking to offer flexible compensation models.
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Generate revenue through per-transaction fees for instant payroll payouts.
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Strengthen deposit relationships by keeping wage disbursements within their ecosystem.
With the gig economy and service industries rapidly embracing EWA, banks that offer RTP-powered payroll capabilities can capture this demand and build stronger business banking relationships.
Gig Economy Payouts: Faster Payments for a Changing Workforce
The gig economy has exploded in recent years, with millions of workers relying on flexible, independent income sources. Platforms like Uber, DoorDash, and Upwork have set new expectations for instant access to earnings, and workers increasingly demand immediate payment options rather than waiting for traditional bank transfers.
For mid-sized banks, this shift presents a strategic opportunity to support gig economy platforms and independent contractors by offering RTP-enabled disbursements. With RTP, banks can:
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Provide real-time deposits for gig economy workers, ensuring faster access to funds.
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Offer specialized business accounts tailored for gig workers who need frequent, small-dollar payments.
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Compete with fintechs like Square and PayPal, which are actively targeting this market.
By positioning RTP as a solution for independent workers and small businesses, mid-sized banks can expand their customer base and increase deposit activity.
B2B Instant Payments: Strengthening Commercial Banking Services
In addition to payroll and gig economy payouts, RTP is also transforming business-to-business (B2B) payments. Traditionally, businesses rely on ACH transfers, checks, and wire payments, which can take days to process and require extensive back-office reconciliation.
With RTP, banks can help businesses improve cash flow, reduce payment delays, and eliminate uncertainty in vendor transactions. This is especially valuable for:
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Small and medium-sized enterprises (SMEs) that need faster payments to manage cash flow.
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Suppliers and vendors that want instant confirmation of funds before releasing goods or services.
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Financial institutions themselves, which can streamline treasury operations by offering real-time corporate disbursements.
Mid-sized banks that integrate RTP into their commercial banking products can offer value-added services that differentiate them from competitors and create new revenue-generating opportunities.
Cost Savings & Operational Efficiencies: RTP as a Profitability Driver
Beyond generating new revenue, RTP adoption also helps banks reduce costs and improve operational efficiency. Many of the inefficiencies associated with legacy payment rails—such as fraud risks, manual processing, and reconciliation delays—are significantly reduced with RTP.
Reducing Fraud and Disputes
One of the most underrated financial benefits of RTP is its ability to reduce fraud exposure. Because RTP transactions are irrevocable and settle instantly, they eliminate many of the risks associated with:
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Check fraud, which remains a major issue for businesses and banks alike.
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ACH returns and reversals, which create back-office challenges and cash flow uncertainties.
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Wire fraud, as RTP provides immediate confirmation of funds, reducing the risk of transaction reversals.
By leveraging RTP’s secure, real-time transaction processing, banks can lower fraud losses, minimize risk management costs, and enhance customer trust.
Eliminating Back-Office Bottlenecks
Legacy payment systems often create unnecessary operational burdens for banks, requiring manual intervention to process, reconcile, and settle payments. RTP eliminates many of these inefficiencies by:
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Providing immediate payment finality, reducing the need for costly exception handling.
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Eliminating the need for end-of-day batch processing, improving straight-through processing rates.
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Reducing inbound customer inquiries, as RTP’s real-time notifications give customers instant payment visibility.
For banks that want to lower their cost per transaction, streamline treasury operations, and reduce manual workloads, RTP offers a clear path to efficiency gains.
Mid-Sized Banks Must Act Now to Stay Competitive
The banking landscape is shifting, and RTP is becoming a fundamental expectation for businesses and consumers alike. While some banks still view real-time payments as a technology challenge, the institutions that move now will reap the financial benefits of early adoption.
Banks that enable RTP will not only retain their most valuable customers but will also open new revenue channels, improve operational efficiency, and reduce fraud exposure. Meanwhile, those that delay adoption risk losing deposit relationships to fintechs, large banks, and alternative payment providers.
For mid-sized banks, the question is no longer if RTP should be adopted, but how quickly they can deploy it to stay ahead of competitors and meet growing customer demand.
