The future of real-time payments in banking

When it comes to payments, the need for immediacy has never been more pronounced. Financial institutions of all sizes are grappling with the integration of instant payment systems, a trend underscored by experts in a recent American Banker-hosted webinar featuring Jim Colassano from The Clearing House, Jim Maimone from Citizens Bank, and Mark Majeske from Alacriti.

The Clearing House’s (TCH) RTP® network is at the forefront of this progress. As Colassano explained, with 375 financial institutions onboard and a growth rate of about 10% quarterly, the network is a testament to the sector’s commitment to real-time payment solutions. TCH’s RTP network, a collaborative effort of 24 of the largest U.S. banks, is the first new payment rail introduced in the U.S. in 50 years, which is significant in itself.

Real-time payments use cases

Real-time payments (RTP) has brought forth a diverse range of use cases, from A2A transfers, loan funding, and gig economy payments to B2B transactions, payroll processing, and insurance claims. The scope of RTP is expansive and continues to grow, while catering to different segments and needs. Maimone’s insights into the varied applications of these use cases in businesses highlight the network’s flexibility and adaptability. He emphasized the importance of aligning RTP with specific business processes, tailoring the technology to fit unique requirements, thus enhancing efficiency and effectiveness.

 

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