Real-time payments: The time is now
Demand to move money quickly is stronger than ever; new research from U.S. Bank suggests that embracing real-time payments can give businesses a crucial advantage. RTP is taking off. Are you missing out?
Real-time payments: The time is now
Demand to move money quickly is stronger than ever; new research from U.S. Bank suggests that embracing real-time payments can give businesses a crucial advantage. RTP is taking off. Are you missing out?
Ride the wave of real-time payments
The early bird catches the worm, so the old saying goes. First-mover advantage is real and is being harnessed by businesses around the world. Amazon’s role as the first online bookseller cemented its place as a household name; and the likes of Uber and Airbnb earned cult status for being the first to disrupt their respective industries.
Today in the U.S., major transformation is under way in payments, thanks to real-time payments (RTP) through the RTP® network. And the first movers are already beginning to realize the benefits.
Offering immediate payments – reducing ‘pending anxiety’ and de-risking money movement – RTP is quickly gaining traction as businesses prioritize speed and convenience when sending and receiving money.
And since the maximum transaction limit was raised in April from $100,000 to $1 million, even more opportunities have opened up for businesses to benefit from the RTP network.
New research from U.S. Bank, based on a survey of 1,000 major U.S. companies predicts that adoption of RTP is set to soar:
38% of companies already use it today
and by 2024, this will rise to 56%
What is RTP?
“
RTP can create a distinct competitive advantage for organizations that decide to embrace it, and that competitive advantage for businesses could be additional new sources of revenue; cost and operational efficiency; being able to create ‘wow’ moments for their customers; and being able to negotiate better terms and conditions with their vendors and business partners. The world is their oyster.
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ANURADHA SOMANI
Head of Payments, Global Treasury Management at U.S. Bank
Early RTP adopters reaping rewards
Some leading companies truly understand this opportunity and are already reaping the rewards. Our research shows that companies that have already harnessed the RTP opportunity – a group we call the ‘RTP Leaders’ – are reporting business benefits that go beyond the traditional role of finance. In the past two years, they’ve performed better than the companies that don’t use RTP and don’t even plan to – the ‘RTP Laggards.’
Here, we explore the RTP opportunity, and crucially, how you can grasp it – before someone else does.
In the second quarter of 2022, companies made more than 41 million RTP transactions, totaling $18 billion – a 12% growth in volume over Q1, according to The Clearing House.
Companies that have seen an increase in the following metrics over the last year
41% of RTP Leaders saw revenue rise over the last year, compared to just 33% of RTP Laggards
39% of RTP Leaders saw an increase in profits over the same period, versus just 30% of RTP Laggards
44% of RTP Leaders have seen their brand reputation improve in the last year, compared to just 30% of RTP Laggards
Early RTP adopters reaping rewards
Some leading companies truly understand this opportunity and are already reaping the rewards. Our research shows that companies that have already harnessed the RTP opportunity – a group we call the ‘RTP Leaders’ – are reporting business benefits that go beyond the traditional role of finance. In the past two years, they’ve performed better than the companies that don’t use RTP and don’t even plan to – the ‘RTP Laggards.’
Here, we explore the RTP opportunity, and crucially, how you can grasp it – before someone else does.
Companies that have seen an increase in the following metrics over the last year
41% of RTP Leaders saw revenue rise over the last year, compared to just 33% of RTP Laggards
39% of RTP Leaders saw an increase in profits over the same period, versus just 30% of RTP Laggards
44% of RTP Leaders have seen their brand reputation improve in the last year, compared to just 30% of RTP Laggards
In the second quarter of 2022, companies made more than 41 million RTP transactions, totaling $18 billion – a 12% growth in volume over Q1, according to The Clearing House.
Explore further
The rise of RTP: Are you missing out?
RTP is a rising star, and in two years, the majority of U.S. firms will be using it. What are the use cases, and how can it power your business success?
Getting started
Companies are taking payments transformation seriously, but making the move to RTP comes with challenges. How can you overcome them and start reaping the rewards?
Meet the RTP Leaders
Some companies have been using RTP for years, and are enjoying the rewards. How have they done it? And how can you do the same?
Make the leap
Today RTP is an emerging opportunity, but it will soon become table stakes. Act now or risk getting left behind.
Explore further
The rise of RTP: Are you missing out?
RTP is a rising star, and in two years, the majority of U.S. firms will be using it. What are the use cases, and how can it power your business success?
Getting started
Companies are taking payments transformation seriously, but making the move to RTP comes with challenges. How can you overcome them and start reaping the rewards?
Meet the RTP Leaders
Some companies have been using RTP for years, and are enjoying the rewards. How have they done it? And how can you do the same?
Make the leap
Today RTP is an emerging opportunity, but it will soon become table stakes. Act now or risk getting left behind.
About the research
The data in this report comes from a survey of financial professionals commissioned by U.S. Bank and conducted by FT Longitude, a Financial Times company, in May and June 2022.
1,000 U.S. based financial leaders responded across business and professional services, government, telecoms and utilities, higher education, hospitality and leisure, technology and fintech, automotive, transportation and logistics, commercial real estate and construction, consumer (including retail), financial services and insurance, health, and manufacturing, industrials and chemicals.
Job role and industry breakdown:
About the research
The data in this report comes from a survey of financial professionals commissioned by U.S. Bank and conducted by FT Longitude, a Financial Times company, in May and June 2022.
1,000 U.S. based financial leaders responded across business and professional services, government, telecoms and utilities, higher education, hospitality and leisure, technology and fintech, automotive, transportation and logistics, commercial real estate and construction, consumer (including retail), financial services and insurance, health, and manufacturing, industrials and chemicals.
About the research
The data in this report comes from a survey of financial professionals commissioned by U.S. Bank and conducted by FT Longitude, a Financial Times company, in May and June 2022.
1,000 U.S. based financial leaders responded across business and professional services, government, telecoms and utilities, higher education, hospitality and leisure, technology and fintech, automotive, transportation and logistics, commercial real estate and construction, consumer (including retail), financial services and insurance, health, and manufacturing, industrials and chemicals.
Explore our latest thinking
Article:
Your real-time payments questions answered
Read the interview with Mike Jorgensen, Head of Emerging Solutions at U.S. Bank.
Article:
The rise of real-time payments
Technology and hospitality are leading the way for real-time payments adoption.
Article:
Beyond the back office
How real-time payments can expand finance leaders’ profiles and boost revenue.
Article:
Leading the way with RTP
How to ingrain a faster payments culture in your organization.
Explore our latest thinking
Article:
Your real-time payments questions answered
Read the interview with Mike Jorgensen, Head of Emerging Solutions at U.S. Bank.
Article:
The rise of real-time payments
Technology and hospitality are leading the way for real-time payments adoption.
Article:
Beyond the back office
How real-time payments can expand finance leaders’ profiles and boost revenue.
Article:
Leading the way with RTP
How to ingrain a faster payments culture in your organization.
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