Kanishka NaikReal-time payments (RTP) are payment systems that clear and settle transactions in seconds, available 24 hours a day, every day of the year. They address delays in batch-based systems like ACH.
In the United States, two RTP infrastructures operate: the RTP network, launched in 2017 by The Clearing House, and FedNow, launched by the Federal Reserve in July 2023. Both settle payments instantly and use the ISO 20022 messaging standard.
RTP transactions are irrevocable once executed, which eliminates counterparty risk for recipients but shifts settlement risk to senders. Both the RTP network and FedNow support a Request-for-Payment feature that enables pull-equivalent transactions with receiver approval.