The rise of RTP: Are you missing out?
The rise of RTP: Are you missing out?
The RTP network first launched in 2017 – when U.S. Bank participated in the first transaction – but it really gained momentum during the COVID-19 pandemic, which caused a major disruption in payments and drove demand for speed and convenience.
The U.S. Bank survey shows that, today, 38% of companies use RTP in some way and 18% say they’re planning to add it as a payment type within the next two years, meaning the majority (56%) will be using it by 2024. Moreover, businesses say that it is the payment method that they are most likely to add within that timeframe.
of U.S. companies will use RTP by 2024
The RTP network first launched in 2017 – when U.S. Bank participated in the first transaction – but it really gained momentum during the COVID-19 pandemic, which caused a major disruption in payments and drove demand for speed and convenience.
The U.S. Bank survey shows that, today, 38% of companies use RTP in some way and 18% say they’re planning to add it as a payment type within the next two years, meaning the majority (56%) will be using it by 2024. Moreover, businesses say that it is the payment method that they are most likely to add within that timeframe.
of U.S. companies will use RTP by 2024
RTP usage today and in 2 years’ time, by industry
Changing the face of business
Real-time payments: The time is now
Your real-time payments questions answered
Read the interview with Mike Jorgensen, Head of Emerging Solutions at U.S. Bank.
Improving customer experience is high on almost every company’s agenda. Faster money movement can fuel this. In the automotive industry, RTP is making a huge difference – both when buying and selling a vehicle.
RTP is fueling instant loans in the automotive industry, allowing auto dealers to simplify the loan-payment process and better control cash flow. This offers a competitive edge, by enabling buyers to drive away on evenings, weekends and holidays.
RTP can help improve the car-selling process too.
Lithia & Driveway are using RTP to pay sellers on the spot for car sales that start on its Driveway.com website – even before the car leaves their driveway. Now, money can be in the seller’s account as soon as the vehicle has been inspected and cleared by a Lithia & Driveway representative.
Monetizing speedy payments
But the benefits of RTP for businesses go beyond just speed and efficiency. Somani explains that companies can monetize the concept of faster payments.
“RTP can open the doors for additional streams of revenue in the business,” she explains. “Let’s say I apply for a loan that's approved immediately. The lender today would either mail me a check or send me the money via ACH. With RTP they could offer instant funds in my account for an additional fee. If my need is urgent, I might have no reservations to pay for the instant access to funds. This provides the lender a new source of revenue.”
She adds that RTP can support the gig economy, too. If companies can offer instant payments, they will be better able to attract the critical mass of workers they need in today’s increasingly competitive labor market. “The biggest asset that any gig economy company has is their flex employees, and the better terms you offer, the more likely it is that they will join you,” she says.
The business use cases for RTP are plentiful. But how can companies make it happen for them? What’s motivating them, and what’s holding them back?
“You buy a car on Saturday and then you can't pick it up until next Wednesday. The reason for this is, the dealer doesn't have the money, so they don't want you driving it off the lot. RTP is changing things.”
Peter Gordon, EVP, Enterprise Payments Product Strategy at U.S. Bank, explaining the pain that a car buyer can feel when it comes to payments.
RTP usage today and in 2 years’ time, by industry
Changing the face of business
Improving customer experience is high on almost every company’s agenda. Faster money movement can fuel this. In the automotive industry, RTP is making a huge difference – both when buying and selling a vehicle.
RTP is fueling instant loans in the automotive industry, allowing auto dealers to simplify the loan-payment process and better control cash flow. This offers a competitive edge, by enabling buyers to drive away on evenings, weekends and holidays.
RTP can help improve the car-selling process too.
Lithia & Driveway are using RTP to pay sellers on the spot for car sales that start on its Driveway.com website – even before the car leaves their driveway. Now, money can be in the seller’s account as soon as the vehicle has been inspected and cleared by a Lithia & Driveway representative.
Monetizing speedy payments
But the benefits of RTP for businesses go beyond just speed and efficiency. Somani explains that companies can monetize the concept of faster payments.
“RTP can open the doors for additional streams of revenue in the business,” she explains. “Let’s say I apply for a loan that's approved immediately. The lender today would either mail me a check or send me the money via ACH. With RTP they could offer instant funds in my account for an additional fee. If my need is urgent, I might have no reservations to pay for the instant access to funds. This provides the lender a new source of revenue.”
She adds that RTP can support the gig economy, too. If companies can offer instant payments, they will be better able to attract the critical mass of workers they need in today’s increasingly competitive labor market. “The biggest asset that any gig economy company has is their flex employees, and the better terms you offer, the more likely it is that they will join you,” she says.
The business use cases for RTP are plentiful. But how can companies make it happen for them? What’s motivating them, and what’s holding them back?
Real-time payments: The time is now
Your real-time payments questions answered
Read the interview with Mike Jorgensen, Head of Emerging Solutions at U.S. Bank.
“You buy a car on Saturday and then you can't pick it up until next Wednesday. The reason for this is, the dealer doesn't have the money, so they don't want you driving it off the lot. RTP is changing things.”
Peter Gordon, EVP, Enterprise Payments Product Strategy at U.S. Bank, explaining the pain that a car buyer can feel when it comes to payments.
RTP usage today and in 2 years’ time, by industry
Changing the face of business
Improving customer experience is high on almost every company’s agenda. Faster money movement can fuel this. In the automotive industry, RTP is making a huge difference – both when buying and selling a vehicle.
RTP is fueling instant loans in the automotive industry, allowing auto dealers to simplify the loan-payment process and better control cash flow. This offers a competitive edge, by enabling buyers to drive away on evenings, weekends and holidays.
RTP can help improve the car-selling process too.
Lithia & Driveway are using RTP to pay sellers on the spot for car sales that start on its Driveway.com website – even before the car leaves their driveway. Now, money can be in the seller’s account as soon as the vehicle has been inspected and cleared by a Lithia & Driveway representative.
Monetizing speedy payments
But the benefits of RTP for businesses go beyond just speed and efficiency. Somani explains that companies can monetize the concept of faster payments.
“RTP can open the doors for additional streams of revenue in the business,” she explains. “Let’s say I apply for a loan that's approved immediately. The lender today would either mail me a check or send me the money via ACH. With RTP they could offer instant funds in my account for an additional fee. If my need is urgent, I might have no reservations to pay for the instant access to funds. This provides the lender a new source of revenue.”
She adds that RTP can support the gig economy, too. If companies can offer instant payments, they will be better able to attract the critical mass of workers they need in today’s increasingly competitive labor market. “The biggest asset that any gig economy company has is their flex employees, and the better terms you offer, the more likely it is that they will join you,” she says.
The business use cases for RTP are plentiful. But how can companies make it happen for them? What’s motivating them, and what’s holding them back?
Real-time payments: The time is now
Your real-time payments questions answered
Read the interview with Mike Jorgensen, Head of Emerging Solutions at U.S. Bank.
“You buy a car on Saturday and then you can't pick it up until next Wednesday. The reason for this is, the dealer doesn't have the money, so they don't want you driving it off the lot. RTP is changing things.”
Peter Gordon, EVP, Enterprise Payments Product Strategy at U.S. Bank, explaining the pain that a car buyer can feel when it comes to payments.
Explore further
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
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.
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