The RTP network now averages over 1 million payments per day, positioning the platform for strong momentum going into the holiday season.
Between September and October, transaction volume on RTP, which is operated by The Clearing House, increased by 6.2%. On November 1, the instant payments powerhouse reached a new single-day record, processing 1.45 million transactions valued at $1.24 billion.
“It is exciting to see that the RTP network is supporting real world payment needs of both consumers and businesses with almost half of payments happening after banking hours,” Margaret Weichert, Chief Product Officer at The Clearing House, said in a prepared statement. “With the holiday season upon us, consumers can send money instantly to pay for gifts, holiday meals and other festivities, while small businesses can get paid in real time.”
Compelling Use Cases
The ability to send payments overnight, on weekends, and on holidays makes instant payments a compelling solution for businesses. This capability allows merchants to securely pay suppliers or partners, pay employees or contractors, and complete reconciliation and accounting functions in seconds.
These aspects have fueled a growing number of use cases for instant payments, including in the gig economy, the insurance industry, and even for government disaster relief funds. Cross-border payments are another promising use case, and RTP has explored a connection to SWIFT, a global messaging network, to facilitate payments from the U.S. to Europe.
A Banner Year
Instant payments—and the open banking model—have been adopted much more readily in countries like Brazil and India. Brazil’s Pix has become so popular that it is expected to surpass credit cards as the dominant payment method in the country. Following this success, speculation has grown around how and when instant payments will gain significant traction in the U.S.
Although the government launched its instant payments service, FedNow, last year, the RTP network is still the largest system of its kind in the country. As more merchants recognize the benefits of instant payments, this holiday season could serve as the springboard for a banner year for the RTP network.
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