Real Time Payments is becoming more widely available across the US, and some might even say it is becoming an essential payment rail for businesses and consumers alike. The reason for this widespread adoption is clear: widespread demand. Consumers see the possibility of faster payments, and this demand drives adoption across the board. As The Clearing House marked 6 years of RTP processing, they noted 11% volume growth and 64 million transactions in Q3 2023 alone. According to Grand View Research the global RTP market size is expected to grow at a CAGR of 35.5% from 2023 to 2030.  

Government Adoption Drives Demand 

Government adoption such as the Federal Reserve’s investment in FedNow, which was rolled out in mid 2023, contributes to these strong RTP forecasts. Governments worldwide have spent recent years investing in the infrastructure to support instant payments and promote adoption. Japan, for instance, set out to double digital transactions by 2025. The support and investment of government agencies worldwide for RTP strengthens consumer and private sector confidence in the payment rail.  

Value Add of RTP in Businesses 

While there are many benefits to businesses, there are two especially worth highlighting. The Real-Time part of RTP means that payments are settled instantly. Since the onset of the pandemic, business owners have been eager to cut down on supply chain issues to give their customers faster, superior service in hopes of retaining a client base. Not only does RTP offer instant payment settling, but this payment rail also offers business owners in-depth payment information. With RTP’s ISO 20022 messaging standards two-way communication is enabled. This allows for commands such as “request for information” and “confirmation of payment” which can be matched to invoices and used for account reconciliation through automated systems.  

What’s Next for RTP? 

Real Time Payments will see continued growth and expansion across the US as banks and credit unions adopt and integrate FedNow. Sectors where RTP is expected to see strong continued implementation are payroll and retail / E-commerce. While the US did not hold a majority of the RTP market in 2022, it is the fastest growing region, a portion of that projection comes from demand for Cross-Border Transfers which will sustain RTP growth over the coming years.