In the US, there has been a huge demand for transparent payment solutions from all parties – consumers, businesses and the financial community are all demanding more. Consequently, the RTP Network, the payment processing network used to send money electronically between banks in the United States, operated by The Clearing House, has seen a huge uptake in usage, surpassing one billion payments.
This milestone has been reached just 18 months after the RTP Network crossed the 500 million transaction mark. It took just over three times as long for the 500 million mark to be reached, with it taking five years. However, the network’s growth reflects a changing attitude in the US payments market as businesses, consumers and the financial community turn their attention to instant payments.
For financial institutions of all sizes, the RTP network’s ability to double payment volume in just 18 months signifies the rapid scaling of real-time payment solutions. Financial institutions have increasingly adopted the RTP network to offer their customers a transparent payment experience that delivers instant funds availability while providing payment confirmations to both the payer and the receiver.
Meeting “extraordinary demand”
Interestingly, when the RTP network exceeded the one billion payments mark on Friday 31 January, it also set new single-day records for payments volume (1,592,419 transactions) and value ($1.44billion).
Commenting on the achievement, David Watson, president and chief executive officer of The Clearing House, the banking association and payments company said: “This milestone, and the pace at which it was reached, highlights the extraordinary demand for instant payments in today’s digital economy and how financial institutions on the RTP network are meeting that need. Surpassing one billion payments is a testament to the transformative impact of the RTP network.
“We’re proud to play a pivotal role in helping financial institutions, businesses, and consumers embrace the speed, security, and transparency that real-time payments offer.”
Impacting every party in the payments cycle
The impact of real-time payments massively impacts small businesses and corporations as they look to improve working capital and cash flow. Companies have leveraged the RTP network to streamline disbursements, supplier payments, and payroll; reducing operational complexity and improving cash flow management. Faster payments enable businesses to be more agile and responsive in today’s dynamic economy, creating a competitive edge.
Additionally, for consumers, the one billion milestone demonstrates how real-time payments are becoming an everyday convenience. From instant refunds to splitting a restaurant tab with friends or receiving access to earned wages, the RTP network offers the speed and control that today’s consumers demand. The accelerated adoption reflects a growing expectation that financial transactions should be as fast and seamless as sending a text.
This milestone also signals the growing importance of real-time payments as a core component of the US economy. The RTP network currently reaches 70 per cent of demand deposit accounts in the United States, meaning that millions of consumers and businesses are already benefiting from instant payments through the more than 850 financial institutions connected to the network.
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