Thursday, January 9, 2025
To put this into perspective, consider that the ACH network handled 31.5 billion payments valued at $80.1 trillion in 2023.
RTP's numbers are substantial, however, when compared to FedNow, the real-time payments network operated by the Federal Reserve. The Fed reported that the number of transactions processed through FedNow was "modest" last year. From January through August of 2024, the network processed just 414,827 transactions.
The fourth quarter of 2024 was especially notable for RTP, TCH said, with a record 98 million transactions valued at $80 billion. That represented 12 percent growth over the third quarter in terms of volume and a 15 percent increase over the same quarter in terms of value.
RTP now averages over 1 million payments a day, TCH said in a press release, with 74 percent of days in December at or over 1 million transactions.
"Once Americans experience the ease, speed, and convenience of instant payments on the RTP network, they want to use it again and again," said Margaret Weichert, chief product officer at TCH. "Customers benefit from the network's immediate availability of funds 24/7, with 42 percent of transactions taking place overnight, on weekends, or holidays."
Another factor contributing to increased activity on the network is the growing number of participating financial institutions, TCH said. The number of FIs participating on RTP grew 67 percent in 2024. And that growth is expected to continue.
TCH stated that more than 285,000 businesses, through FIs on the system, are using the RTP network each month for business-to-business transactions, including supply chain payments, bill payments and merchant settlements. These transactions have helped increase the average transaction value on the network by 40 percent. In 2024, the average payment sent via RTP was $719, up from $514 in 2023.
Currently there is a transaction limit on RTP of $1 million. Beginning February 9, 2025, that limit increases to $10 million. TCH said the new limit will support growth on the network for applications related to real estate and cash concentration.
The Faster Payments Council—a private sector organization that represents a wide range of stakeholders focused on promoting faster payments for consumers and businesses—last year queried 25 core banking providers and payment processors that support 90 percent of U.S.-based FIs.
Respondents estimated that between 70 percent and 80 percent of FIs will be enabled to receive instant payments by 2028. Also, between 30 percent and 40 percent of FIs will be sending instant payments by 2028.
The disparity between sending and receiving FIs arises from the fact that in most instant payments networks all participating FIs are required to receive payments to ensure universal access. Additionally, sending instant payments often requires additional technology investments that many FIs cannot afford.
TCH referenced in a press release a soon-to-be released study undertaken with PYMNTS.com that found two-thirds of credit unions and smaller banks see instant payments as a way to increase customer satisfaction.
The Faster Payments Council, in its 2024 research, identified three key use cases that most FIs prioritize when it comes to instant payments. They are:
The study also identified three use cases with the greatest reach. They are:
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