In a time of whirlwind change within the payments landscape, one thing is certain: Fast transactions are a must. So how can everyone, from small business owners to gig workers and multinational corporations, meet the demands of commerce in the digital age? Increasingly, they turn to real-time payments (RTP).
What are real-time payments, and how do they work?
Real-time (or instant) payments are transactions between bank accounts that are initiated, cleared, and settled instantly (or, more accurately, in just a few seconds). Unlike other electronic transfers, RTP systems function 24/7/365 regardless of a financial institution’s operating hours or holidays.
Real-time payments in the US run through the RTP network developed by The Clearing House and the Federal Reserve’s FedNow, with alternative platforms available across more than seventy countries.
Real-time payments handle each transaction individually. Here’s how:
- The sender uses a digital banking platform to initiate a transfer.
- The sender’s financial institution instantly verifies transaction details.
- The payment is routed through an RTP network.
- The payment moves directly between the banks and is irrevocably settled in real time.
- Both the sender and recipient receive immediate notifications confirming that the funds have successfully transferred.
The benefits of RTP extend beyond just speed.
Although online payments have now existed for decades, real-time payments platforms solve issues ranging from cash flow management to security and reconciliation — all of which can slow a growing business down.
RTP vs. ACH vs. wire transfer: Which should your business use?
To illustrate why many organizations see instant payments as a modern solution well worth the investment, it’s helpful to compare RTP with two of the most common transfer tools: ACH transactions and wire transfers.
ACH transactions are a reliable and affordable way to send money between accounts in the US, but often take one to three business days to clear. This adds more time and uncertainty while businesses and banks wait for a payment to appear.
When it comes to wire transfers, international payments are finalized in as little as a few hours, but they also carry service charges between $25 and $50. For businesses that frequently conduct lower-value transactions, these fees can become unsustainable.
RTP transactions rely on automatic and instant fraud-screening algorithms to stop suspicious activity before the money moves. RTP clear with immediate finality, but there’s no recourse if the money is sent to the wrong recipient.
- RTPs are best used for: On-demand vendor payouts, critical-deadline payments, and small-to-medium-sized immediate transfers
- ACH is best used for: Payroll processing, recurring billing, and routine vendor payments
- Wire transfers are best used for: Large B2B transactions and international payments
How real-time payments work for B2B transactions
Real-time payments are processed through banking rails that clear and settle funds in seconds. It’s a way to streamline cash flow management, a concern that’s particularly important for small- and medium-sized businesses.
RTPs are processed instantly, so there’s no need to wait for funds to become available. This reduces the lag time that was once a cumbersome reality of liquidity forecasting, decreasing lean firms’ reliance on credit and taking the guesswork out of sending or receiving vendor funds.
Additionally, RTP data is submitted in accordance with ISO 20022, the new global standard for payment messages. That brings real-time transparency for reconciliation and bookkeeping within reach.
The benefit of real-time payments: A modernized payroll system
There’s a growing use case for RTP in payroll.
Rather than a traditional fixed payroll schedule — bi-weekly in the US or monthly in most other countries — RTP provides employees with their earned income at any time. For instance, gig employees who may log most of their hours in a short period can use instant payments to access funds with more flexibility.
In emergencies, too, RTP networks allow companies to make payments to employees or contractors on weekends, nights, and holidays.
FedNow vs. RTP network: What’s the difference?
The FedNow service and the RTP network both provide instant transactions in the US, but there are a few key differences.
RTPs run on a network provided by The Clearing House since 2017; today, this network reaches 71% of demand deposit accounts (DDAs) and has over 1,000 participating banks and credit unions. In May 2026, the RTP network recorded a new single-day payment record, processing 2.27 million transactions worth $8.62 billion.
The US Federal Reserve launched FedNow in July 2023 as a separate payment rail from RTP. Similar to RTP, FedNow processes payments in real time, 24/7. FedNow reaches approximately 40% of DDAs and has 1,500 financial institutions on the service.
Both instant payment methods have low fees — set at $0.045 per transaction, to be paid by the sender — and, just like RTP, FedNow is backed up by ISO 20022. FedNow also charges a $0.01 fee for a request for payment (RfP), as does the RTP network.
While The Clearing House’s RTP lets businesses send up to $10 million, at FedNow, they are capped at $1 million.
Real-time payments around the world: SEPA, FedNow, and beyond
Domestic instant payment systems are becoming ubiquitous around the world. These are the key examples:
- Japan’s Zengin system launched in 1973 and was the world’s first RTP network
- In the US, FedNow and RTP are two primary instant settlement options
- Under the new EU Instant Payments Regulation, Eurozone banks are legally required to offer SEPA Instant Credit Transfers (SCT Inst) at the same price as standard credit transfers
- India’s Unified Payments Interface (UPI) processes more than 737 million transactions daily
- Thailand’s PromptPay and Singapore’s PayNow boast near-universal domestic adoption
- More than 170 million people use Brazil’s Pix, moving about $16 trillion since 2020
- Nigeria’s NIP ranks among the top instant payment platforms worldwide
In 2026, these domestic systems and regional platforms are piloting connections across borders. Download Convera’s Payments 2026+: Liquidity in Motion report to learn about the modernization of cross-border payment infrastructure.
Can real-time payments be used for cross-border transactions?
Real-time payments can be used for cross-border transactions in some corridors. For example, systems in Singapore and Thailand are linked and allow businesses and individuals to send instant payments across borders.
Though most RTP networks were built for domestic use, global initiatives are starting to bridge national systems to provide real-time, 24/7/365 international transfers.
One of them is an initiative from the Bank for International Settlements (BIS): Project Nexus is standardizing how instant payment systems connect to each other, starting in Southeast Asia.
Another is the TARGET Instant Payment Settlement (TIPS) platform, a pan-European financial infrastructure service. It’s compliant with SCT Inst and currently offers final and irrevocable settlement of real-time payments in euro, Swedish krona, and Danish krone.
Real-time payment security: What businesses need to know
Real-time payments settle instantly, helping businesses improve cash flow management and vendor relations. However, they are irrevocable. To account for that, businesses must implement preventative measures, such as multi-factor authentication (MFA) and real-time fraud detection, to prevent unauthorized outgoing transfers.
To ensure your instant payments are secure, partner with a trusted provider, such as Convera. Convera can help your business secure payments through advanced, AI-driven fraud screening, real-time sanctions monitoring against international lists, and adherence to global regulatory frameworks. Convera also offers strict, role-based payment approval models to ensure no funds are released without proper internal authorization.
How Convera fits into the real-time payments landscape
Customers’ expectations for faster payments are driving financial institutions and payment providers to offer real-time payments, including across borders. That’s where Convera’s expertise is invaluable.
Convera bridges the gap in the real-time payments landscape by helping move your money — the smart way — in more than 140 currencies across over 200 countries and territories. Backed by 60+ global licenses and leading compliance standards, Convera brings together local RTP rails, traditional correspondent networks, and emerging blockchain settlement through its partnership with Ripple.
