With over 200 credit unions now live on the RTP® network, the shift to instant payments is well underway. Credit unions are leveraging this transformation to strengthen member relationships, drive deposit growth, and explore new revenue streams. In a recent webinar, Maximizing Growth and Member Engagement With Instant Payments, industry experts Keith Gray, Vice President of Strategic Partnerships at The Clearing House, and Mark Majeske, SVP of Faster Payments at Alacriti, provided valuable insights into the opportunities presented by instant payments.
Growing Demand for Instant Payments
Today, consumers and businesses are increasingly seeking faster, more reliable payment solutions. With 59% of U.S. consumers living paycheck to paycheck, instant payments play a critical role in helping financial institutions support their members’ financial well-being. This trend presents a significant opportunity for credit unions to better serve their communities by providing faster access to funds.
Consumer and business adoption of digital payments continues to rise. Over half (53%) of U.S. consumers now use digital wallets, and 78% report high satisfaction with instant payments for disbursements. Similarly, digital wallet use among businesses has grown by 31% in the past year, further reinforcing the increasing demand for real-time payments across all sectors.
Gray shared that over 750 financial institutions—more than 250 of which are credit unions—are now live on the RTP network. These institutions are using instant payments to enhance financial control, improve transparency, and support key use cases such as payroll, loan funding, and investment transfers. With the RTP network now reaching 70% of U.S. accountholders and supporting millions of businesses and consumers, credit unions that embrace instant payments are well-positioned to strengthen member engagement.
Debunking the Fraud Myth
A common concern surrounding instant payments is the potential for increased fraud due to transaction speed. However, as Gray explained, the industry’s experience tells a different story. “One of the things from an industry standpoint that was a concern about just the movement towards instant payments was faster payments equating to faster fraud. Well, it hasn’t after seven years.”
Instant payments are inherently more secure due to their credit-push nature, meaning only account holders can initiate transactions—eliminating risks associated with unauthorized debits. Additionally, financial institutions are employing multi-layered fraud prevention strategies, including multi-factor authentication, device biometrics, and real-time transaction monitoring, to ensure security. Majeske emphasized the importance of proactive fraud prevention: “What we’re trying to do is prevent fraudulent transactions before they occur.”
New Growth Opportunities With Instant Payments
Credit unions adopting instant payments aren’t just keeping pace with industry trends—they’re opening doors to new growth opportunities. By offering instant payments, credit unions encourage members to maintain higher deposit balances, as they provide flexibility without requiring funds to be moved elsewhere.
Gray highlighted that instant payments create “stickiness,” as 69% of consumers say they are more likely to remain loyal to financial institutions that offer free instant payments. Additionally, credit unions can generate new revenue streams through value-added services, such as real-time payroll disbursements and instant loan funding.
The conversation also covered small business use cases. With real-time access to working capital, small businesses benefit significantly from instant payments—particularly during weekends and non-business hours. “The RTP network never goes completely quiet,” Gray noted. This is key for businesses that rely on fast and efficient cash flow management.
Enhancing Financial Inclusion With Instant Payments
Beyond speed and convenience, instant payments play a crucial role in financial inclusion. Credit unions have a unique opportunity to help underbanked members manage their finances more effectively. Instant payments allow for immediate access to wages, faster loan disbursements, and the ability to make last-minute bill payments—reducing reliance on costly payday loans and check-cashing services.
Majeske pointed out that 53% of instant payment transactions occur outside of traditional banking hours, proving the necessity of real-time access to funds. “If you do a poll of your membership and you say, ‘Hey, would you like to get paid faster, smarter, and more securely?’ I would say about a 100% would say, ‘Yeah, how come you’re not doing that already?’”
Unlocking the Power of Request for Payment (RFP)
One of the most exciting developments in instant payments is the growing adoption of Request for Payment (RFP). This functionality enables members to receive a digital payment request over the RTP network, giving them more control over their payments while simplifying transactions for businesses.
Unlike traditional bill pay methods, where members must manually initiate payments, RFP provides a seamless, one-click payment experience. This not only improves efficiency for members but also enhances cash flow management for businesses by reducing payment delays. Gray anticipates a surge in RFP adoption, particularly for one-time bill payments, account transfers, and small business transactions.
From boosting member engagement and driving deposit growth, to enabling small business success and expanding financial inclusion, the potential of instant payments is vast. To explore these opportunities in greater detail, watch the full webinar, Maximizing Growth and Member Engagement With Instant Payments, featuring insights from The Clearing House and Alacriti.
