Advantages of Instant Payment
Instant Payment enhances the user experience and opens up new opportunities for companies to optimize their cash flow.
For private customers
The instant transfer is a secure, flexible and useful payment solution for everyday use, particularly for:
paying back a friend or colleague;
transferring funds to a family member for urgent use;
participating in an online auction;
buying goods from a private individual;
paying for your shopping cart on an e-commerce site;
paying for a craftsman to come to your home;
paying taxes and fines;
donating to charity, etc.
Instant Payment allows you to be reactive and pay your debts even on Sundays, without risking late payment penalties from tax authorities or energy suppliers.
What’s more, with a theoretical ceiling of €100,000, instant transfer technology allows for the payment of high amounts, unlike bankcards, whose daily or monthly ceilings can sometimes be an obstacle to certain transactions.
Last but not least, private customers have access to their account balance in real time, making it easier for them to manage their budget. They have greater control over their spending and reduce overdraft fees.
Businesses are constantly going digital, to boost productivity and meet new legal obligations (dematerialization of tax returns, electronic invoicing, etc.) They therefore need a means of payment adapted to the digital transition in order to:
- pay suppliers or subcontractors instantly and meet invoice due dates;
- carry out inter-company fund transfers to avoid cash flow defaults;
- refund a customer without delay to preserve the customer relationship;
- pay an urgent tax or social security debt;
- carry out cross-border transactions;
- pay salaries or reimburse expenses quickly, etc.
Instant Payment is a way of optimizing the production chain. Order processing can be triggered as soon as funds arrive in the company’s bank account.
SMEs and VSEs are also better able to control their cash flow and avoid the risk of default. They no longer suffer from the time lag between the sale of goods and services and the collection of receivables.
Companies that integrate instant transfer also offer a better customer payment and refund experience, with a direct impact on brand image. What’s more, they have an impact on their conversion rate, as higher caps help to reduce payment failures and cart abandonment.
Thanks to its perfect match with digital developments, Instant Payment has great potential in the world of cashless payments. All the more so as the European authorities intend to legislate in order to democratize Instant Payment and strengthen consumer and business confidence in this means of payment.
Treezor offers instant credit transfers as part of its SEPA offering. Its technology is both easy to use and compliant with regulatory controls and LCB-FT procedures. Our experts are here to help you make your payment project a reality.