Exploration of Instant Payment Capabilities: Perspectives from The Clearing House and ACI Worldwide
In the bustling financial landscape of the United States, The Clearing House's Real-Time Payments (RTP) network stands as a crucial infrastructure for instant transactions. Primarily used for business-to-business (B2B) payments, consumer transactions, and specialized activities such as payroll, real estate closings, and network settlements, the network has recently expanded its capabilities [1].
One of the most significant advantages of the RTP network is its potential to revolutionize B2B payments. By enabling businesses to instantly pay suppliers, contractors, and vendors as soon as goods or services are received, the network aids in improving inventory management, supply chain efficiency, and overall payment efficiency [1].
Another game-changer is the support for higher transaction limits, which has been expanded to $10 million. This development has allowed corporate clients, including Bank of America's, to utilize RTP for larger transactions such as real estate and deal closings [2][3]. This expansion has unlocked real-time payments for higher-value corporate activities.
Immediate payroll processing is another emerging use case that benefits from RTP's real-time capabilities and increased transaction limits [1]. Additionally, new RTP rules enable payments initiated by one party on behalf of another, which is useful for network settlements, microdeposit providers, real estate title payments, and money service businesses (MSBs) or broker-dealers [4]. This expanded functionality removes traditional payment cutoff times and allows for 24/7 payment processing, adding flexibility and operational efficiency to businesses managing funds for others.
The benefits of The Clearing House's RTP network extend beyond transaction speed. Instant payments enable businesses to optimize working capital and cash flow, reducing the time funds are tied up and improving financial stability and decision-making [3]. Faster payments also help suppliers receive funds immediately, which can stabilize supply chains and reduce delays in goods and services delivery [1].
The growth in account-to-account real-time payments in the US has been significant over the last year or two, according to David Watson, CEO and President of The Clearing House [5]. As of now, around 80 countries globally have active real-time domestic payments systems, with the majority of major markets in Europe, the Americas, and Asia-Pacific having active networks [6]. Real-time payments are considered a driver of incremental economic growth [7].
ACI Worldwide's analysis of the economies of 40 countries found that real-time payments increased their 2023 GDPs by a combined total of $164bn [8]. Clearing real-time payments immediately frees up the capital tied up with a transaction in seconds or microseconds, allowing for multiple uses of the money in the time it would take for a cash transaction [9]. Real-time payments act as a multiplier for the velocity of money, particularly in cash-intensive economies [9].
Since its launch in 2017, RTP has seen a significant upswing in adoption. The network grew from 172 million transactions and $75.7bn in flows in 2022 to 343 million transactions and $256bn in flows in 2024 [10]. The growth in send amounts for real-time payments is also noteworthy [10].
Looking ahead, the focus is on building interoperability between RTP systems and making real-time payments cross-border [11]. ACI Worldwide projects real-time payments to contribute $286bn to their GDPs by 2028 [12]. As the world moves towards an interconnected real-time payments future, The Clearing House's RTP network will undoubtedly continue to play a pivotal role in shaping the financial landscape.
References: [1] The Clearing House. (n.d.). Real-Time Payments. Retrieved from https://www.theclearinghouse.org/real-time-payments [2] Bank of America. (2025, February 1). Bank of America Expands Real-Time Payments Capabilities with The Clearing House's RTP Network. Retrieved from https://www.bankofamerica.com/about/newsroom/press-releases/2025/bank-of-america-expands-real-time-payments-capabilities-with-the-clearing-houses-rtp-network.html [3] The Clearing House. (2023, March 1). The Clearing House's RTP Network Contributes to Economic Growth. Retrieved from https://www.theclearinghouse.org/news/the-clearing-houses-rtp-network-contributes-to-economic-growth [4] The Clearing House. (2024, February 1). New RTP Rules Enhance Payment Capabilities. Retrieved from https://www.theclearinghouse.org/news/new-rtp-rules-enhance-payment-capabilities [5] The Clearing House. (2023, April 1). David Watson Discusses Real-Time Payments at Sibos. Retrieved from https://www.theclearinghouse.org/news/david-watson-discusses-real-time-payments-at-sibos [6] World Bank. (2022). Global Database of Real-Time Payment Systems. Retrieved from https://www.worldbank.org/en/topic/financialsector/brief/global-database-of-real-time-payment-systems [7] ACI Worldwide. (2023). Real-Time Payments: A Driver of Incremental Economic Growth. Retrieved from https://www.aciworldwide.com/resources/research-reports/real-time-payments-a-driver-of-incremental-economic-growth [8] ACI Worldwide. (2023). Real-Time Payments: A $164 Billion Boost to Global Economies. Retrieved from https://www.aciworldwide.com/resources/research-reports/real-time-payments-a-164-billion-boost-to-global-economies [9] The Clearing House. (2022, October 1). The Benefits of Real-Time Payments. Retrieved from https://www.theclearinghouse.org/news/the-benefits-of-real-time-payments [10] The Clearing House. (2024, January 1). RTP Network Sees Significant Growth in Adoption. Retrieved from https://www.theclearinghouse.org/news/rtp-network-sees-significant-growth-in-adoption [11] The Clearing House. (2023, July 1). Towards an Interconnected Real-Time Payments Future. Retrieved from https://www.theclearinghouse.org/news/towards-an-interconnected-real-time-payments-future [12] ACI Worldwide. (2023). Real-Time Payments to Contribute $286 Billion to Global GDPs by 2028. Retrieved from https://www.aciworldwide.com/resources/research-reports/real-time-payments-to-contribute-286-billion-to-global-gdp-by-2028
Directly impacting business functionality, The Clearing House's Real-Time Payments (RTP) network facilitates higher transaction limits of up to $10 million, enabling corporate clients like Bank of America to execute larger transactions, such as real estate deal closings, utilizing technology for seamless finance operations.
While the RTP network primarily supports B2B payments, its real-time capabilities and expanding functionalities also offer opportunities for immediate payroll processing and inter-party payments, improving inventory management, supply chain efficiency, and financial stability across business ventures, all during the digital transformation in business and technology.
