RTP Network upgrades the availability of Request for Payment

The Request for Payment (RfP) functionality on the RTP network is now enabling broker dealers, billers, and suppliers to securely request payments from their customers through bank channels. In response, both consumers and businesses can make instant payments. Several financial institutions participating in the RTP network now offer RfP capabilities, providing a streamlined process for requesting and making payments. 

RfP gives the payer control over the transaction, allowing them to review the request and decide whether to pay or decline it. The payer can choose to send an RTP payment immediately or schedule it for a future date, depending on their financial institution. Payments are processed in seconds over the RTP network, ensuring that billers receive immediate access to irrevocable funds, and payers receive immediate confirmation of payment receipt. 

Prominent banking institutions such as Bank of America, BNY Mellon, Citi, Fifth Third, PNC Bank, U.S. Bank, and Wells Fargo, serving high-volume corporate billers, are among the participants offering RfP capabilities. Additionally, other financial institutions such as Bridge Community Bank and North American Banking Co. have also obtained certification to send RfP messages on the RTP network. Various technology providers, including FIS, Fiserv, Jack Henry, and Open Payment Network, have received certification to offer Request for Payment services to their financial institution customers participating in RTP. 

Officials from APEX Fintech Solutions cited by theclearinghouse.com expressed enthusiasm for the expansion of RfP usage across financial institutions. The move is seen as a positive step towards wider adoption of RTP, with a focus on reducing ACH return risk for retail broker-dealers and their investors. Apex aims to create a frictionless experience for investors and emphasises the importance of real-time instant digital account opening and funding. 

In preparation for the expanded launch of RfP, TCH has collaborated with RTP participants over the past year to improve the risk management framework to mitigate potential misuse. A risk-based approach is being taken for the initial introduction of this capability and the use cases allowed on the network.

What are the main permitted use cases?

At the time of writing, permitted use cases for this new capability include:

• Consumer Bill Pay: companies offering recurring consumer services, like utilities, can use RfP to request payment for their services. 
• Business-to-Business payments: businesses can pay suppliers, business partners, contractors, freelancers, or other third parties using RfP. 
• Payroll: payroll providers can send RfPs to corporate customers to enable same-day funding of payroll, eliminating the need to fund payroll days in advance. 
• Account to Account (A2A): individuals can use RfPs to request transfers between bank or brokerage accounts owned by the same person. For example, brokers can send an RfP to customers to facilitate instant transfers from their bank account to their brokerage account for immediate trading. 

According to The Clearing House, as adoption of RfP grows and participants gain experience, it is expected that the permitted use cases on the RTP network will expand to encompass all types of traditional and digital payment experiences. The insights gained from early adopters will play an important role in the future expansion and widespread adoption of RFP.