73% of Businesses Struggle with Payment Delays, According to Rapyd’s 2024 State of Payments for High-Opportunity Industries
- Exploring High-Opportunity Industries: High-opportunity industries are fast-growing, highly profitable and have unmet payment needs. They include Online Gaming, Influencer & Affiliate Marketing, Creator Economy, Online Trading, Online Travel, and Digital Goods.
- 73% Struggle with Delays: Rapyd’s report finds 73% of high-opportunity vertical businesses face payment delays (2-15 days).
- Delays Disrupt Businesses: Nearly half (45%) of businesses struggle with cash flow due to payment delays, highlighting the need for faster solutions.
LONDON–(BUSINESS WIRE)–Rapyd, the global fintech leader, today released its report, “2024 State of Payments: High-Opportunity Industries.” This comprehensive study dives into the evolving landscape of cross-border payments, focusing on the needs of fast-growing industries such as online gaming, content creation platforms, online travel, marketplaces, and e-commerce. While these industries offer high-profit potential, businesses within them face unique payment challenges, including delays, fraud, and complex compliance requirements.
To gain a deep understanding of the current landscape and future outlook, Rapyd conducted a global research study surveying more than 1,000 business owners and payment decision-makers from a variety of high-opportunity industries, across ten key markets: Brazil, Canada, France, Germany, Italy, the Netherlands, Spain, Singapore, the UK and the US. The study explores how B2B and B2C businesses in these industries accept payments, disburse payouts, and view future payment trends.
Speed & Convenience Top Priority: The report finds that a staggering 73% of businesses in high-opportunity industries grapple with payment delays ranging from 2-15 days, hindering cash flow. As a result, speed and convenience remain the top payment priorities. 38% of businesses surveyed prioritise fast and easy transfers, highlighting the need for solutions that address both speed and reliability.
Delays Disrupt Businesses: Nearly half (45%) of these businesses struggle with cash flow due to payment delays, according to the Rapyd report. This underscores the urgency for faster payment solutions, with many businesses (32%) seeking a simple integration process alongside swift transactions.
Businesses Want Increased Authorisation Rates: Beyond speed and convenience, the report finds that authorisation rates remain a concern for many businesses. A select group of businesses state that improved authorisation rates matter, with 1 in 6 businesses wanting their payment provider to offer solutions that minimise declined transactions.
Key Findings:
- Speed & Convenience Reign Supreme: Businesses prioritise frictionless payments (38% prioritise speed of payments).
- 73% Struggle with Delays: Rapyd’s report finds 73% of businesses in high-opportunity industries face payment delays (2-15 days), hindering cash flow.
- Fraud Prevention Remains Crucial: With 25% of businesses citing it as a key factor, robust fraud management is essential.
- Real-Time Payments on the Rise: 38% of businesses anticipate a surge in RTP adoption for faster settlements and improved cash flow.
- AI Combats Evolving Fraud: The report emphasises the value of AI in mitigating fraud, particularly difficult-to-detect tactics.
The Rise of AI and Real-Time Payments
The report highlights the growing adoption of two transformative technologies that are reshaping the future of high-opportunity industries:
- Real-Time Payments (RTP): 38% of businesses surveyed anticipate a spike in RTP adoption in the next 12 months. RTP offers significant advantages over traditional methods, with faster settlement times leading to improved cash flow and wider access to capital. As David Rosa, Rapyd’s General Manager of Disburse, points out, “Payment delays are a significant pain point for both B2B and B2C businesses, with 26% reporting them as a major challenge. Real-time payments and payouts can significantly improve the payment experience for a variety of high-opportunity industries that need to collect and send payments to businesses and consumers.”
- AI-Powered Solutions: AI plays a critical role in fraud prevention, risk management, and streamlining compliance checks. The report emphasises the value of AI in mitigating fraud, particularly difficult-to-detect tactics. Dr. Shlomit Wagman, Rapyd’s Chief Regulation and Compliance Officer, elaborates on this point, stating, “AI is a powerful weapon against increasingly sophisticated fraud tactics.”
Balancing Security and Frictionless User Experience
The report also explores the delicate balancing act faced by B2C businesses between security and a smooth user experience, as highlighted by Robert Gray, Rapyd’s Chief Risk Officer. “B2C ecommerce businesses must prioritise a secure and compliant checkout process while ensuring a smooth experience,” he advises. “This can be achieved by implementing robust fraud prevention measures, like real-time checks, without hindering the flow.”
Rapyd Empowers Businesses in High-Opportunity Industries
The Rapyd report dives deeper into these challenges and explores how innovative solutions like Real-Time Payments (RTP) and AI-powered fraud prevention can empower businesses in high-opportunity industries. By partnering with Rapyd, businesses can gain access to a global network, seamless integrations, robust fraud protection, and expert guidance in navigating complex compliance landscapes.
To learn more, download the full report and access valuable resources on Rapyd’s website: rapyd.net/opportunity
About Rapyd
Rapyd lets you build bold. Liberate global commerce with all the tools your business needs to create payment, payout and fintech experiences everywhere. From Fortune 500s to ambitious business and technology upstarts, our payments network and powerful fintech platform make it easy to pay suppliers and get paid by customers—locally or internationally.
With offices worldwide, including Tel Aviv, Dubai, London, Iceland, San Francisco, Miami, Hong Kong and Singapore, we know what it takes to make cross-border commerce as easy as being next door. Rapyd simplifies payments so you can focus on building your business.
Get the tools to grow globally at www.rapyd.net. Follow: Blog, Insta, LinkedIn, Twitter.
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Lizzie Ryan
Rapyd Global Communications Manager
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