First Citizens Bank introduces instant payments via RTP network

The new service offers faster payment processing, allowing customers to receive funds within seconds, improving traditional electronic payment methods like ACH and wire transfers. This capability is available 24/7.

By joining the RTP network, First Citizens enables customers to bypass typical transaction delays, offering immediate access to transferred funds. The bank plans to introduce the ability for customers to send instant payments via the RTP network soon.

The RTP network, developed by The Clearing House, provides real-time settlement and fund availability, surpassing other electronic payment systems limited by time-based cutoff periods. It also allows for including electronic messages with payment details, upgrading the clarity of transactions.

Real-time payments have a wide range of applications. For consumers, the system allows for immediate transfers from other RTP-enabled sources, such as digital wallets. Business customers benefit from the ability to manage cash flow more effectively, receiving immediate payment for goods and services and potentially offering discounts for instant payments.

First Citizens Bank offers the RTP service free of charge to consumer banking customers. Business clients can use the service without fees during an introductory period, after which a small fee will apply.

Growth of RTP in the US

The demand for real-time payment systems in the US has surged in recent years, driven by the growing expectations for speed and convenience in financial transactions. As consumer behaviour shifts towards digital solutions, particularly in areas like ecommerce, P2P payments, and mobile wallets, there is increasing pressure on financial institutions to offer faster, more efficient payment options. Traditional payment methods, such as ACH transfers and wire payments, have faced criticism for their delays in processing and limited availability outside business hours. In response, systems like the RTP network have emerged to meet this demand, offering instant fund transfers and 24/7 accessibility.

Businesses, too, are embracing real-time payments as they adapt to a fast-paced economic environment. The ability to instantly receive and reconcile payments helps companies manage cash flow more effectively, reducing financial risks and providing greater flexibility in their operations. Instant payment options are particularly valuable for industries like retail, gig economy platforms, and online marketplaces, where real-time transactions can improve customer experience and foster business growth. As a result, the adoption of real-time payment systems has been steadily increasing, with both consumers and businesses driving the need for faster, more reliable financial infrastructure.