BOSTON— A new analysis has found that the “urgency” consumers increasingly feel in their everyday lives also translates into their expectations of instant lending payouts.
The latest “Money Mobility Tracker” from PYMNTS Intelligence, “Race Against Time: How Urgency Shapes the Demand for Instant Lending Payouts,” which was produced in collaboration with Ingo Payments, found the growth of instant disbursements reflects a larger shift: “Consumers now expect financial services to operate in real time.”
More Than ‘Nice-to-Have’
The report states that instant payouts are no longer simply a nice-to-have feature and are viewed as a “financial lifeline.” It further notes that more than 60% of borrowers want funds instantly due to financial necessity, and more than one-quarter require payouts within 30 minutes.
“But speed has a price. And often, that price is hidden until it’s too late,” PYMNTS Intelligence said.
According to PYMNTS Intelligence, the report “highlights a striking paradox: Borrowers are overwhelmingly willing to pay for the privilege of speed, but they resent being surprised. In other words, consumers understand that speed costs money. They are not rejecting fees outright. What they reject are hidden fees.”
Illusion of Speed, Reality of Surprise
Why do hidden fees cut so deep? According to the analysis, it’s because they violate a perceived expectation of fairness held by many consumers.
“Consumers approach borrowing with financial vulnerability and are often facing bills, emergencies or essential expenses that cannot wait,” PYMNTS Intelligence said. “In that context, a surprise fee can feel less like a business transaction and more like exploitation.”
Reputational Risk
For lenders, PYMNTS Intelligence said the dynamic may introduce a greater chance of reputational risk.
“What may seem like a minor ‘processing fee’ at the point of transaction could become a long-term loyalty issue,” the company said in releasing its findings. “Borrowers who feel misled are frequently less likely to return, recommend or expand their relationship with the institution compared to money recipients satisfied with the economics of their instant disbursement.”
PYMNTS Intelligence further said the data found that 86% of financial institutions view loan disbursements as a key use case for instant payment technology.
“Yet many of these same institutions risk undermining the value proposition by failing to communicate fees clearly,” the company added. “Transparency, then, becomes more than a compliance matter. It becomes a competitive strategy. Lenders that set expectations upfront are not only meeting regulatory pressures but also positioning themselves as customer-centric. Conversely, institutions that rely on hidden charges to capture incremental revenue may risk long-term erosion of trust.”
