Citi Perspectives 2024 Corporates Edition

18 | Services Citi Perspectives Beyond Treasury Efficiency: How instant payments can power business operations The payments landscape is evolving rapidly and the expectations of consumers and corporates continue to grow. Today’s consumers demand fast, convenient payout options; corporates want greater transparency and enhanced efficiency. The paymentsmarket is better served than ever, with awide range of providers offeringmyriad payment options and the emergence of real-time payment solutions. As payments have progressed to become an always-on, near 24/7 environment, instant payment clearing schemes have emerged across the globe. Approximately 80 countries now have one (or more) real-time payment options and the number is growing steadily. 1 The speed and greater visibility they offer have the potential to significantly enhance the efficiency of key treasury processes such as accounts payables. With instant payments, treasury departments can have more accurate and timely information about their cash positions, enabling them to make better-informed decisions about cash and liquidity management. While the speed and data-rich nature of instant payments may offer treasury greater flexibility and efficiency, most instant payments systems today have value limits more suitable to consumer or operational payments. However, the landscape is evolving. We already see that some instant payment schemes do not have payment value limits, and for others, where limits do exist, they are increasing. The U.S. and UK are two examples, where in 2022, local instant payments schemes in both countries increased their value limits from $100,000 and £250,000, to $1 million and £1 million, respectively. Treasurers should keep close watch on this development as instant payments become more relevant for their core activities. 1 https://www.pymnts.com/news/faster-payments/2023/new-map-shows-real-time-payments-progress-in-2023/