The Clearing House’s Real Time Payments network is seeing growth in adoption and transaction volume as consumers, small- and medium-sized businesses and large enterprises demand instant payment capabilities. 

Now in its seventh year, the network has 800 banks, reaches 70% of the market and is averaging 1 million transactions per day, Jim Colassano, senior vice president of product development, told Bank Automation News. 

The growth in volume is attributed to customers finding more uses for the RTP network, including advanced payouts for wages and digital wallet funding, he said.

“It’s really great to see those applications come to life, especially around the holidays, because that’s when you start to see payment activity really kick up,” he said. 

Cash flow is critical

Consumers and merchants alike need access to cash and often can’t wait for traditional settlements, which can take days, Colassano said. 

With instant payments, consumers can tap earned wage access (EWA) to fill the cash void, Colassano said.  

EWA allows workers to access portions of their paychecks before their usual payday, according to the Federal Reserve Bank of Kansas City.  

This access is “critically important” considering most families in the U.S. have a challenge paying unanticipated bills between pay periods, Colassano said. 

“Being able to get those wages in your hands when you need it in a usable form is extremely important,” he said.  

Similarly, merchants need real-time access to money. 

“One of our biggest use cases, especially this time of year, are merchants, especially small- and mid-sized merchants,” Colassano said, noting that liquidity is extremely important to SMBs. 

“This time of year, cash flow is critically important to keep those merchants going,” he said. 

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