Corporate accountholders can be a significant source of instant payment fee income if marketed correctly. Too often, financial institutions miss the mark by focusing on the features of instant payments rather than the real value they bring to businesses.To make an impact, think like your customers. They don't care if instant payments benefit your institution; they want to know how it benefits them. What challenges are they facing? How can instant payments solve those problems? The key to winning them over is proving your value, not just talking about it.
Show, Don't Tell: The True Value of Instant Payments
For businesses, transaction costs are a major pain point. Some are paying interchange fees as high as 4% per transaction, an unsustainable burden, especially for SMBs operating on razor-thin margins. With rising costs due to tariffs and other economic pressures, businesses need every advantage to retain working capital.Instant payments offer a powerful alternative. Account-to-account (A2A) payments can reduce transaction costs to as low as 1.25%, eliminating interchange fees and enabling direct relationships between financial institutions and their account holders.Payments reconcile instantly and are FDIC insured, giving businesses a secure, cost-effective solution for managing cash flow.That's the message banks and credit unions should be delivering to their corporate accountholders: instant payments aren't just about speed. They're about cost savings, efficiency, and stronger financial control.
A Trusted Partner Uncovers High-Value Use Cases
A knowledgeable payments partner doesn't just provide technology. They help financial institutions identify the best use cases for instant payments and develop a strategy to execute. Understanding the industries and business models you serve allows you to tailor solutions that make a real difference. Here's how it can workin practice:
B2B PaymentPortal for Instant Vendor Payments
One financial institution recently worked with Pidgin to build a B2B payment portal within its account management system. This portal allows businesses (such as car dealerships, real estate agencies, and other vendors) to receive instant payments from credit unions. For example, when a credit union funds an auto loan, it can instantly send the funds to the dealership, streamlining operations and improving cash flow for both parties.
Loan Payment Portal for Greater Payment Flexibility
Another financial institution partnered with Pidgin to develop a loan payment portal that extends payment options beyond traditional account holders. This solution enables consumers to make loan payments via ACH or Same-Day ACH to a credit union, even if they don't have an active account with that institution. For businesses, particularly those managing customer financing (such as auto dealerships and mortgage lenders), this creates a seamless, real-time way to process loan payments and reduce delays in funding.
Final Thoughts
Beyond cost savings, instant payments provide a host of benefits for corporate clients, including improved cash flow, streamlined reconciliation, and better risk management. Financial institutions that position themselves as trusted advisors by offering education, tailored solutions, and real-world examples will not only increase adoption but also strengthen long-term account holder relationships.
