The Biggest RTP Rival Is the Payment System That Already Works

Real-time payments (RTP) are gaining ground, but many retailers are still hesitant to switch from reliable legacy systems like ACH and wires. For business owners, the primary hurdle isn't the technology itself—it's the perceived lack of necessity. If your current settlement process works, you might not see the value in instant payments. However, businesses that have actually made the switch report significant improvements in cash flow management and operational efficiency. The industry is currently seeing a divide between 'proponents' and 'observers.' Proponents use RTP to gain instant access to funds, which can be critical for paying suppliers or managing payroll in a pinch. They also benefit from better data transparency and reduced transaction friction. Meanwhile, observers remain comfortable with standard settlement times, often overlooking the competitive advantage that comes with instant liquidity. As more lenders and financial providers integrate FedNow and RTP networks, the pressure on retailers to offer and utilize these faster rails will increase. Staying stuck in legacy systems may eventually lead to higher costs or slower service compared to tech-forward competitors.

Source: PYMNTS

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