RTP network grows as businesses send high-value payments
3 mins read

RTP network grows as businesses send high-value payments

The RTP network broke records in both the number of transactions and the value of payments it enabled in the second quarter.

The Clearing House’s instant payments system enabled individuals and businesses to complete 82 million transactions with a total value of $55 billion during the quarter, The Clearing House said in a July 10 press release.

The RTP network also set a single-day record by enabling $1 billion in instant payments on June 28, the release said.

According to the release, during the quarter the withdrawal volume increased by 7% and the overall value of withdrawals jumped by 30%.

The Clearing House attributes the increase in overall payment value to corporations and businesses that increased the number of large-value payments sent through the system, using instant payments to concentrate cash.

“The growth in transaction value is driven by the widespread adoption of RTP networks across a range of use cases, including account-to-account transfers, title insurance and mortgage closing payments, gig economy payouts, access to earned wages, and more,” Margaret Weichert, chief product officer at The Clearing House, said in a release.

“Banks and credit unions that have joined the RTP network are seeing how instant payments can increase deposit volume while meeting member and customer expectations for 24/7 instant payment availability,” Weichert added.

The RTP network’s second-quarter results follow a quarter in which the instant payments system also set records, with the first quarter seeing it record-breaking volumes of $76.4 million and value of $42.3 billion.

At the time, the Clearing House reported that the chain had seen growth in both transaction volume and value in 19 of the previous 20 quarters dating back to 2019.

PYMNTS Intelligence has found that real-time payments are gaining popularity around the world as banks, FinTech companies, corporations and governments launch initiatives to speed up payments for their citizens and customers.

Global real-time payments are forecast to grow 161% between 2024 and 2028, reaching $58 trillion by 2028, according to “The Real-Time Payments World Map,” a report by PYMNTS Intelligence and The Clearing House.

Instant payments offer a solution to the time and cash flow challenges that businesses face. In the transportation industry, for example, payments like those enabled by the RTP network help small operators make payments at any time, ensuring they are perfectly aligned with their cash flow needs, Cheryl Gurz, vice president of RTP product development at The Clearing House, told PYMNTS in an interview published in June.

“They’re on the road, it’s 10 p.m. on the West Coast, and the next morning they have a payment. And the East Coast vendor can make that payment in 30 seconds and it’s settled,” Gurz said. “So they don’t have to worry about the time, they don’t have to worry about the banker’s hours.”