This adjustment aims to support increasing demand for higher-value instant payments in areas such as real estate, supply chain financing, and business-to-business (B2B) transactions. In essence, the current transaction limit of USD 1 million, implemented in April 2022, will increase to accommodate evolving industry needs.
According to The Clearing House, the higher transaction limit is designed to meet specific business requirements across various sectors. Key areas of use include:
- Real Estate Transactions: The new limit supports instant, high-value payments for commercial and residential property transactions, supporting after-hours and weekend closings.
- Merchant Settlements: Larger merchants and retailers can benefit from faster daily payouts compared to traditional settlement timelines.
- Supply Chain Payments: Manufacturers can expedite supplier payments, facilitating quicker shipment of goods and materials.
- Cash Management: Businesses can consolidate funds into a single account for liquidity optimisation, especially during month-end or quarter-end activities.
The system’s availability 24/7, including weekends and holidays, aims to align with the operational needs of today’s economy. The Clearing House reports that 42% of RTP network transactions occur outside traditional business hours.
Meeting growing demand
Financial institutions and businesses have expressed interest in higher-value instant payment options. Representatives from Citizens, noted that the new limit addresses a growing need among corporate clients, while officials from The Clearing House highlighted the system's adaptability.
According to the official press release, more than 285,000 businesses rely on the RTP network for instant payments. In October 2024, the network processed a record 31.9 million transactions worth USD 25.7 billion according to the same source. The Clearing House continues to expand its services, clearing over USD 2 trillion daily through its payment systems, including wire, ACH, and check imaging solutions.
The RTP network is designed to offer immediate payment settlement while securely transmitting associated payment information, providing businesses with reliable and efficient digital transaction capabilities.
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