How Fintech Is Making Real-Time Payments Profitable

In today’s digital economy, speed isn’t just a convenience, it’s a competitive advantage. Real-time payments (RTP) have become an important part of this transformation as consumers and businesses demand faster, seamless financial transactions.

But even though the benefits are clear, many businesses still wonder if using RTPs can be profitable. Payment service companies are challenging that assumption. Through innovation, smart data usage, and new business models, fintechs are finding ways to make real-time payments not just fast—but financially rewarding.

What Are Real-Time Payments?

Real-time payments refer to payment systems that let funds transfer and be settled instantly, every day of the year. Unlike traditional payment paths like ACH or wire transfers, RTPs are done within seconds, even outside of standard banking hours.

Examples of real-time payment networks include the U.S.-based RTP® network from The Clearing House and FedNow, the Federal Reserve’s service launched in 2023. On the international front there are systems like the UK’s Faster Payments, India’s UPI, and Brazil’s Pix.

The Profitability Challenge

Banks and traditional payment processors have struggled in the past to monetize real-time payments. These systems need significant tech upgrades and real-time fraud detection. They also don’t offer much in the way of ROI. Additionally, the low transaction fees of RTPs often make them less profitable than credit card transactions.

So how are fintechs changing the landscape?

1. Layering Value-Added Services

Fintech companies are bundling RTP with services that deliver added value and new revenue streams. For example:

• Payroll fintechs offer real-time access to earnings for gig workers and hourly employees, charging a fee to employers or third-party platforms.
• B2B fintechs integrate RTP into invoicing and cash flow tools, which helps small businesses get paid faster while charging a monthly fee.
• Consumer apps (like Venmo and Cash App) monetize instant transfers to bank accounts by charging a small percentage of the transaction, usually 1.5%–2%.

These added services change RTP from an expense to a profitability center.

2. Driving Customer Retention and Engagement

Speed creates stickiness. When customers can move money instantly, they’re more likely to stay loyal to platforms that offer convenience and control. Fintechs that embed RTP into digital wallets or investment platforms report higher customer engagement, more frequent app usage, and improved lifetime value.

This loyalty indirectly drives profitability by reducing churn, lowering acquisition costs, and increasing opportunities for cross-selling.

3. Leveraging Data for Profit

Real-time transactions create real-time data. Fintechs use this data to:

• Build models to detect fraud.
• Offer micro-lending or credit lines tied to consumer behavior.
• Personalize promotions or discounts.

4. Optimizing Infrastructure and APIs

Fintechs build infrastructure from the ground up using cloud platforms and open APIs. This allows for:

• Lower development costs
• Faster integration with RTP networks
• Customized experiences for clients

By operating with lower overhead, fintechs make RTP more cost-effective.

5. Strategic Partnerships and Embedded Finance

Many fintechs are partnering with banks and digital marketplaces to embed real-time payments directly into the user experience. This could mean RTPs being used while buying a product, paying a vendor, or transferring money.

For example, a logistics platform can integrate RTP to pay drivers the moment a delivery is completed. This instant gratification not only reduces cumbersome administrative delays for the driver but creates but earns revenue for the fintech through service fees or commissions.

6. Global Expansion and Cross-Border RTP

Some fintechs are taking RTP global by connecting multiple real-time networks, allowing for near-instant cross-border transfers. This is especially profitable in regions where traditional international wire transfers are expensive and slow.

By offering cheaper, faster alternatives, fintechs can attract businesses and individuals looking for better value—and capture fees that undercut incumbent systems.

The Bottom Line

Fintechs aren’t just moving money faster; they’re building entire ecosystems that monetize speed, convenience, and data. Fintechs are proving that with the right strategy, real-time payments can be a genuine, profitable revenue stream.