Real-time or instant payments are money transfers that occur with almost no delay. They provide customers immediate access to services and speed up business cash flow. While many companies still wait hours or days for funds to clear, that trend is quickly changing. In 2025, the instant payment market is expected to reach nearly $35 billion.

Below, we’ll explain how real-time payments work in New Zealand, why they matter to businesses, and how to secure them.

What’s in this article?

• What are real-time payments?
  
• How do instant payments work in New Zealand?
  
• Why are real-time payments important for businesses?
  
• What industries benefit the most from real-time payments?
  
• How does Stripe help businesses use real-time payments?
  
• What security measures do businesses need for instant payments?
  

What are real-time payments?

Real-time payments move money from one financial account to another almost instantly, 24/7. Unlike traditional transfers that can take hours or sometimes days, these payments can settle in seconds and make the funds available immediately. There’s no need to wait for bank hours or batch processing.

How do instant payments work in New Zealand?

Bank transfers in New Zealand typically run through the Bulk Electronic Clearing System (BECS), which processes transactions in batches rather than instantly. So, the country hasn’t achieved true real-time payments—second-by-second movements—yet. Businesses and customers still rely on traditional bank transfers, card options, and workarounds such as the e-payment method POLi.

However, New Zealand’s payment industry is trying to develop a real-time network with the help of organizations such as Payments NZ. This infrastructure could enable faster account-to-account transfers with more detailed data, improved security, and broader accessibility.

Why are real-time payments important for businesses?

Waiting for incoming money to clear creates inefficiencies. Retailers can’t restock until funds are cleared, payroll departments have to plan around banking hours, and finance teams have to track expected finances. Real-time payments settle immediately, with no chargebacks or processing delays. They improve cash flow and minimize the guesswork with delayed availability of funds, making businesses more agile and financially secure.

With instant payments, companies can make more time-sensitive transactions such as last-minute supplier shipments. They can also help operations that rely on quick inventory turnover or urgent payments (e.g., restaurants and contractors) receive their money much more quickly.

Real-time payments also meet modern user expectations: an online retailer can ship an order without waiting for funds to clear, and a rental service can confirm a booking when a customer pays. While many real-time payment schemes only work for one-time payments, some even support recurring payments—a feature which could help a software-as-a-service (SaaS) provider grant access immediately after a subscription purchase.

What industries benefit the most from real-time payments?

Real-time payments change how businesses manage cash flow, interact with users, and operate day-to-day. While nearly every industry benefits, certain sectors see the most impact when money moves instantly.

Ecommerce and online retail

Speed and convenience drive online shopping, but traditional bank transfers create friction. Real-time payments allow businesses to accept instant transfers at checkout, which reduces their reliance on cards (and their fees) while offering immediate confirmation. These transactions are authorized as quickly as card purchases, and businesses don’t have to wait days for funds to clear before they ship an order.

Retail and hospitality

Minimizing settlement delays and card fees can make a big difference for businesses with tight margins, such as retail, food service, and hospitality. In countries with real-time payments, customers can scan a QR code or use a phone number to pay directly from their bank apps, avoiding card fees and processing delays.

The gig economy and on-demand services

Freelancers, rideshare drivers, and delivery couriers typically have to wait days—or weeks—to get paid. Real-time payments let gig workers access their earnings right after completing a job. For instance, a driver can see their funds after each ride.

How does Stripe help businesses use real-time payments?

If you have a business with global users, you can use Stripe Payments to accept immediate bank transfers in other regions. For example, if you have customers in Australia, you can offer them real-time payment with PayTo. Stripe makes it straightforward to add these real-time payments alongside existing methods such as cards and digital wallets. It also automates routing, currency conversion, and compliance, which means less technical overhead for your venture.

Stripe also comes with:

• Fraud prevention tools such as Stripe Radar, which uses AI to detect suspicious activity in real time

• Automated webhooks and notifications so businesses can act on payments right away, whether they’re shipping an order or granting access to a service

• Real-time reporting in the Stripe Dashboard for instant visibility into transaction statuses

These features make it faster and easier for organizations to adopt real-time solutions.

What security measures do businesses need for instant payments?

Before they accept real-time payments, businesses must look into preventing fraud, complying with regulations, and protecting user data. As New Zealand develops its instant payments infrastructure, here’s what businesses need to know.

Fraud prevention and security

Real-time payments settle in seconds and are usually irreversible. Once the money moves, it’s gone. Businesses need proactive fraud prevention tools, such as:

• Real-time fraud detection, either through their payment providers or internal monitoring tools

• Alerts for suspicious activity (e.g., large or unusual requests)

• Customer identity verification for high-risk transactions

Companies must treat instant payments like cash and ensure their legitimacy before accepting funds.

Compliance

Businesses that accept instant payments must comply with Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) policies and Know Your Customer (KYC) regulations. Platforms that handle user-to-user flows must monitor activities and flag suspicious patterns, just as banks do. Enterprises must also be aware of and work within any real-time transaction limits set by financial institutions. Payment providers such as Stripe can help with compliance, but companies must stay informed about their recordkeeping and reporting obligations.

Data protection and privacy

Instant payments often carry more detailed transaction data (e.g., invoice numbers and payer references). This is useful for reconciliation but also increases the responsibility to protect sensitive financial information. Consequently, businesses must:

• Comply with local data privacy guidelines and standards, such as the General Data Protection Regulation (GDPR), if they operate internationally

• Encrypt and limit access to all banking details and payment identifiers

• Update policies and staff training accordingly

As real-time payments become available in New Zealand, businesses must stay informed about new guidelines. Strong security protocols will make the transition easier.