A million-dollar leap into the future

May 09, 2022

On April 18, the size limit on real-time payments increased tenfold, making RTP a viable option for more transactions.

By Shailesh Kotwal

Real-time payments (RTP) have already begun to transform the corporate treasury function, delivering a more efficient payment experience for businesses, their customers, payees, and employees. Now a key change will open up more opportunities for CFOs and treasurers who are considering RTP as a way to save time and money in their payments processes and give their business a competitive edge.

RTP provides immediate settlement of funds and instant payment notification for consumers and businesses of all sizes. Thus, with RTP, companies don’t need to wait days for a payment to settle and funds to flow into a bank account. RTP payments are less expensive than wire transfers, and unlike a wire, they can be sent outside of banking hours.

As of April 18, companies can move significantly more money through these payments—up from $100,000 previously to $1 million per transaction today. This means RTP transactions can be larger, while still providing fast and transparent payments for all parties.

At U.S. Bank, we expect this change to motivate some companies to identify new ways they can take advantage of RTP, and for usage across the United States to expand. The Clearing House reported that 37.8 million RTP transactions took place in Q4/2021, for a total of $15.7 billion—up 13 percent over the previous quarter.

From auto dealers to insurance companies, healthcare organizations to retailers, and investment brokerages to title companies, all types of businesses can use RTP to:

  • Send and receive payments instantly, 24×7;
  • Streamline back-office processing, thanks to detailed data carried within each RTP transaction; and
  • Improve liquidity by providing faster access to the proceeds from a sale, even on weekends and holidays.

Treasury and finance professionals who understand the prospective benefits to their organization of faster payments are better prepared to stay a step ahead as digital payments evolve. We expect RTP to become increasingly embedded in the software that treasury and finance functions use every day, which will allow us all to reimagine and transform the movement of money. For treasurers ready to improve their payment experience, we believe RTP has the power to be a game changer.

Reprinted with permission from the “April 28 edition of the “Treasury & Risk”© 2022 ALM Global Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-257-3382 or

Shailesh Kotwal is vice chair of payment services at U.S. Bank, the fifth-largest bank in the United States with operations in North America and Europe. As one of the top payments providers for corporate America, U.S. Bank has trusted relationships with businesses of all sizes, at a range of different places in their digital transformation.

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