Instant Payments May Give Credit Unions a Deposit Growth Advantage

This news highlights a shift in how financial institutions handle money movement, which directly impacts how quickly you get paid. Credit unions are finding that enabling instant payments via the RTP network leads to significant growth in business deposits. For retailers and service providers, this is a signal that the 'waiting period' for funds is becoming obsolete. When your lending partners or banks adopt these protocols, the lag between a customer signing a financing contract and the cash hitting your business account shrinks toward zero. Amplify Credit Union reported that business accounts receiving instant payments grew 25% faster than those that didn't. This suggests that businesses are actively moving their operations to institutions that prioritize liquidity. For a merchant, faster settlement improves cash flow management. It allows you to restock inventory or pay installers without waiting for traditional ACH cycles to clear. As more credit unions—which often provide competitive consumer financing rates—adopt these tools, you may see faster funding turnarounds on the backend of your financing programs.

Source: PYMNTS

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