Blogs

By: Ashton Vandivert, Manager, Emerging Payments

Does slow and steady really the race? While the tale of the tortoise and the hare certainly taught us a valuable life lesson, it’s easy to forget (and sometimes prove wrong) in today’s world. There’s a reason modern society is often referred to as a “rat race” – everything needs to be faster, faster, faster…now, now, now! And not only do we have a need for speed, but it is quickly becoming the expectation.

With the increasing demand for speed, faster payment systems Real-Time Payments (RTP®) and FedNow^SM are making their way into the spotlight. What was once a lingering idea on the backburner of strategy has gained significant momentum on the heels of the COVID-19 pandemic as consumers, businesses and financial institutions alike are turning to payment solutions that are swift, seamless and real-time.

RTP® was launched by The Clearing House in 2017. In addition to RTP®, the Federal Reserve Bank is launching its own payment system, FedNow^SM, expected to be released in 2023. That’s two new payment systems in five years. Take a second to think about that – we’ve been playing around with ACH for more than 40 years. And now, in half a decade, there are two new kids in town.

RTP® and FedNow^SM are different from ACH in the fact that the systems operate on a 24/7/365 basis. Gone are the constraints of normal banking hours. Along with a completely wide-open timeframe, RTP® currently can be, and FedNow^SM will be, utilized by consumers, businesses and financial institutions. Anyone, anywhere can participate in faster payments (as long as they have connection to the given network). These benefits of speed, convenience and accessibility are what set RTP® and FedNow^SM apart from traditional methods.

What’s the common denominator in the benefits of faster payments? It’s digital. As we evolve into the digital age, the needs and demands are evolving, too. Like it or not, this isn’t going anywhere anytime soon. Change is scary and transformation is not always easy; however, they’re also completely necessary to survive. RTP® and FedNow^SM are the future of payments, and they offer endless possibilities.

Are you ready to learn more about the two newest payment systems emerging into our lives? Join me on May 18, 2022 at 10 CT for a 60-minute webinar, Your NOW Reality: FedNow^SM, RTP® and Same Day ACH. During this webinar, we will examine key features and benefits of FedNow^SM and RTP® and provide a high-level overview of how both payment systems currently or will work. We'll go over common vocabulary and important things you need to know about both payment systems, including payments processing and funds availability. Then, put the puzzle pieces together and talk about participation levels, processing times and how these new payment systems fit into the world of ACH. I hope to see you there, speed racer!