Real-time answers about real-time payments

December 07, 2022

Innovative companies are using real-time payments to accelerate their digital transformation and improve the customer experience. But what makes RTP different? We answer your questions.

This article was originally published as part of Real-time payments: The time is now.

Real-time payments (RTP) offer U.S. businesses the opportunity to send and receive payments at any time of day, any day of the year. The RTP® network allows them to act quickly, improve customer experience and better control their cash.

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. In fact, our survey of 1,000 U.S. companies found 56% plan to use real-time payments by the end of 2024.

As with all new innovations, RTP’s early adopters are reaping the rewards first, and questions remain for the rest. Mike Jorgensen, Head of Emerging Solutions at U.S. Bank, has the answers.


Why is RTP so significant for U.S. companies, and what problems does it solve for them?

Mike Jorgensen

RTP represents the first new payment rail in the past 40 years. At the moment, the market is rooted in the use of wire, check, ACH and other payment vehicles, with RTP coming to solve a lot of the key problems associated with them.

The big issue it solves is availability. RTP is 24/7 in nature, so you can make and receive payments after hours, on weekends and on holidays. Also, RTP is able to document the transaction and make sure the originator and the receiver understand what the transaction is about. And finally, it creates a connected customer experience. All of a sudden, the consumer’s experience is enhanced because you can work on their timetable, not on the bank's.

Can you describe a key use case for RTP?

The latest generation doesn’t have the patience for waiting for an account to be funded or for transactions to clear.

For example, if there’s a younger person who has opened a brokerage account, they would run headfirst into waiting three to five business days for the account to be funded before a buy could happen. With RTP, the account is funded in real time.

It sounds like RTP can enhance the customer experience

Absolutely. The next generation has grown up with phones in their hands, giving them instant access to anything they want. That’s translating into their buying preferences today. They expect their buying experience to be simple, immediate and frictionless across systems. This includes the ability to make payments and move money in real time.

What do companies need to do to take advantage of RTP?

First, companies need to focus on creating an improved and efficient customer experience. They can’t assume they can do business the way they’ve always done it. The pandemic was a great accelerator of this mindset – contactless payments were preferred over cash or checks.

Second, companies have to decide whether they want to implement RTP by themselves or with a trusted partner, such as a bank or a fintech. Speed to market and creating a seamless experience are key.

Finally, they need to focus on what they want their ideal end-user experience to be. Lithia Motors, for instance, decided it was a competitive advantage to pay the consumer when they picked up the car instead of making them wait for days after the transaction.

Innovation is tough, but what are the risks of not keeping up with payments transformations such as RTP?

At the moment, companies have a fear of missing out, but that will soon turn into the reality of missing out. They will get to a point where they can’t differentiate themselves from their competitors and they won’t have internal efficiencies to give them a better margin. The customer experience is always evolving, so companies have to do everything they can to keep up.


We surveyed 1,000 senior finance leaders about the rise of real-time payments and found improved business results for the first wave of early adopters. Gain insights into how innovative companies are using RTP to accelerate their digital transformation in Real-time payments: the time is now.


To learn how real-time payments are changing the way companies do business, visit our RTP® resource page or schedule a call with a treasury management expert.

Related content

Real-time payments fuel innovation

Innovative payroll solutions may help attract hourly workers

Restaurant survey shows changing customer payment preferences

Webinar: CSM corporation re-thinks AP

4 ways Request for Payments (RfP) changes consumer bill pay

Higher education strategies for e-payment migration, fighting fraud

Digital banking for business: How connectivity improves customer experience

Leading the way for real-time payments

Beyond the back office: real-time payments

Improve government payments with electronic billing platforms

Transition to international ACH

How to accept credit card payments without transaction fees

Unexpected cost savings may be hiding in your payment strategy

Can faster payments mean better payments?

Automate escheatment for accounts payable to save time and money

Addressing financial uncertainty in international business

4 benefits to paying foreign suppliers in their own currency

Crack the SWIFT code for sending international wires

Benefits of billing foreign customers in their own currency

Real-time answers about real-time payments

How the next evolution of consumer bill pay makes it easier to do business

Ways prepaid cards disburse government funds to the unbanked

Want AP automation to pay both businesses and consumers?

Top tips for card payments optimization

Enhancing the patient experience through people-centered payments

Government billing survey: The digital transformation of the payment experience

Collect utility and telecom bill payments faster

Automate accounts payable to optimize revenue and payments

3 ways to adapt to the new payments landscape

Colleges respond to student needs by offering digital payments

Webinar: Transform your business with automated payables

Making the cross-border payment decision: Wire or international ACH?

What government officials should know about real-time payments

Time is money: Intelligent Payment Routing saves businesses both

4 ways to make practical use of real-time payments

Drive digital transformation with payments innovation

Integrated payments healthcare benefits

Higher education and the cashless society: Latest trends

Unlocking payment flexibility with intelligent payment routing

A simple guide to set up your online ordering restaurant

ePOS cash register training tips and tricks

What corporate treasurers need to know about Virtual Account Management

Managing the rising costs of payment acceptance with service fees

Standardizing healthcare payments

Consolidating payments for healthcare systems

Tap-to-pay: Modernizing fare payments pays off for transit agencies and riders

Zelle® helps Sunriver Resort make payments efficient and secure

Role of complementary new channels in your payments strategy

Navigate changing consumer behavior with service fees

How blockchain technology is changing treasury

How COVID-19 is transforming healthcare payments

Luxury jeweler enhances the digital billing and payment customer experience

How Everyday Funding can improve cash flow

Payment industry trends that are the future of POS

Modernizing fare payment without leaving any riders behind

Access, flexibility and simplicity: How governments can modernize payments to help their citizens

Webinar: Approaching international payment strategies in today’s unpredictable markets.

Increase working capital with Commercial Card Optimization

Banking connectivity: Helping businesses deliver the easier, faster, more secure customer experience of the future

ABCs of APIs: Drive treasury efficiency with real-time connectivity

Hospitals face cybersecurity risks in surprising new ways

How emerging banking solutions enable better decisions

Escheatment resources: Reporting deadlines for all 50 states

Artificial intelligence in finance: Defining the terms

How electronic billing platforms improve government payments

Key considerations for online ordering systems

3 timeless tips to reduce corporate payments fraud

Digital trends poised to reshape hotel payments

Three healthcare payment trends that will continue to matter in 2022

The surprising truth about corporate cards

Safeguarding the payment experience through contactless

How AI in treasury management is transforming finance

Cashless business pros and cons: Should you make the switch?

Understanding and preparing for the new payment experience

White Castle optimizes payment transactions

3 reasons governments and educational institutions should implement service fees

Rent payments: What’s changing for commercial real estate

Buried treasure: Maximizing analytics for treasury management

3 benefits of integrated payments in healthcare

Webinar: AP automation for commercial real estate

Webinar: A closer look at U.S. Bank AP Optimizer

The future of financial leadership: More strategy, fewer spreadsheets

Tech tools to keep your restaurant operations running smoothly

COVID-19 safety recommendations: Are you ready to reopen?

How to improve digital payments security for your health system

Enhancing liquidity management: 4 benefits of visibility

Top 3 ways digital payments can transform the patient experience

Start of disclosure content

RTP® is a registered trademark of The Clearing House Payments Company LLC.

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.