How financial institution sponsorship powers fintech real-time payments
Real-time payments are quickly becoming the expectation — not the exception. In fact, nearly 90% of consumers prefer to receive funds instantly1. Consumers want immediate access to their money, and that demand affects both fintechs building modern experiences and the financial institutions supporting them.
Fintechs are under pressure to deliver speed and flexibility, and financial institutions have an opportunity to provide them with secure, compliant access to payment networks. Meeting real-time expectations starts with the right sponsorship model and infrastructure.
Real-time payments expectations are rising
Industry research shows that 1 in 4 consumers waits three days or more to receive funds2 — a clear signal that the industry has a speed problem.
Today’s users want payment experiences that match the rest of their digital lives:
- Instant access to funds
- Flexible options for funding and payout
- Secure, seamless digital-first experiences
- Multiple pathways that support their preferred method
But many providers are constrained by outdated rails, limited connectivity or single-path payment flows that slow everything down. Even with the support of a sponsor financial institution, fintechs often lack the infrastructure needed to deliver the frictionless experience that drives adoption, loyalty and growth.
This infrastructure gap is exactly why SHAZAM® exists — to close it.
Why financial institution sponsorship is a strategic advantage
Being a sponsor financial institution is more than providing regulatory access. It’s a strategic opportunity to lead within the digital payments ecosystem.
Sponsor financial institutions serve as the licensed, regulated backbone for fintech programs, supporting risk oversight, compliance requirements, settlement operations, network access and program governance.
This positions sponsor financial institutions to expand into high-volume verticals such as insurance, healthcare, education and utilities — markets defined by recurring payments and the need for reliable, real-time movement of funds.
With SHAZAM, sponsor financial institutions gain modern infrastructure, expanded capabilities and hands-on guidance to turn sponsorship into a sustainable growth engine.
How SHAZAM supports fintechs and sponsor financial institutions
SHAZAM connects fintechs and sponsor financial institutions with the infrastructure needed to deliver real-time payments reliably.
- Flexible sponsorship models: SHAZAM supports card issuance, funds transfer gateways, ATM access and other services, allowing fintechs and financial institutions to tailor program options to their growth priorities.
- Modern rails and real-time readiness: Fintechs and financial institutions can deliver digital-first, real-time experiences backed by SHAZAM’s modern connectivity and compliance-driven stability.
- Control over economics: Sponsor financial institutions maintain direct negotiation power with fintech clients and can scale programs at a pace aligned with their risk tolerance and operational capacity.
- Hands-on, U.S.-based support: SHAZAM’s experienced teams guide partners through program design, risk management, compliance and ongoing monitoring, providing stability and expertise every step of the way.
Meeting modern demand requires modern partnerships
Closing the real-time expectations gap requires more than faster payments. It requires:
- Adding faster payment capabilities
- Supporting multiple funding and payout methods
- Reducing payment failures and processing delays
- Partnering with networks that innovate quickly
SHAZAM’s processing infrastructure enables greater agility, allowing fintechs and institutions to innovate without compromising security, compliance or stability.
Real-time payments are a shared opportunity
Real-time expectations aren’t going away — they’re accelerating.
The global fintech sector reached about $395 billion in 2025 and is projected to surpass $1.1 trillion by 20323, demonstrating the massive growth opportunity for institutions that invest in modern payments technology.
Fintechs need partners who can help them scale. Sponsor financial institutions need networks to help them stay competitive. And both need infrastructure that removes friction instead of adding to it.
SHAZAM enables all three.
SHAZAM brings fintechs and sponsor financial institutions together to make real-time payments work reliably and at scale.
Interested in learning more? Read our whitepaper, Partners in Progress: The Case for Financial Institution – Fintech Alliances.
Resources:
1 The State of Digital Disbursements
2 PYMNTS
3 Fortune Business Insights
SHAZAM, Inc., and ITS, Inc., provide this blog for general informational purposes only. The blog may be shared via direct link, provided the content remains unchanged and is presented as originally published. SHAZAM, Inc., and ITS, Inc., assume no responsibility for errors or omissions. By using this blog, readers acknowledge that the information provided does not constitute legal advice and is not a substitute for advice from a qualified, licensed attorney.