Doubling Down: The Growing Case for Multi-Rail Real-Time Payments

Instant payments have become a competitive imperative for financial institutions (FIs) of all sizes. As real-time payment adoption accelerates in the United States, a key trend is reshaping the landscape: multi-rail strategies. Banks are realizing they do not need to choose between The Clearing House’s private RTP® network and the Federal Reserve’s public FedNow® Service. Rather, they can gain more value by embracing both.

This shift reflects rising consumer expectations for seamless, always-on payment experiences. It also highlights the need for resilience, flexibility and broader market reach. With each network offering unique strengths and catering to different audiences, multi-rail instant payment strategies provide a key advantage in a rapidly evolving financial ecosystem.

More FIs Are Adopting a Multi-Rail Approach

Multi-Rail Strategies Meet Consumer Demand for Seamless, Always-On Service

FIs Adopting a Multi-Rail Approach Benefit From Each Network’s Unique Strengths

Expand Reach and Resilience With a Multi-Rail Strategy

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More FIs Are Adopting a Multi-Rail Approach

U.S. financial institutions are embracing a multi-rail strategy for real-time payments. No longer seeing adoption as a choice between the two primary rails, banks are increasingly adopting both the RTP network and the FedNow Service.

FIs no longer see a need to choose between instant payment rails.

Previously, many U.S. institutions saw the choice between the two rails as a key barrier preventing real-time payment adoption. They were holding out to see which rail would become the leader in the space. Now only 17% of U.S. banks see the choice between the two as an issue, down from 31% in 2024.

58%

of FIs that enable instant payments do so through both the RTP network and the FedNow Service.

The multi-rail approach has become the norm rather than the exception in real-time payments.

Fifty-eight percent of U.S. financial institutions that enable instant payments do so through both the RTP network and the FedNow Service. In fact, the initial launch of FedNow saw a concurrent increase in the number of FIs enabling real-time payments through the RTP network.

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Multi-Rail Strategies Meet Consumer Demand for Seamless, Always-On Service

Consumers overwhelmingly prefer instant payments, and those who use them report higher satisfaction. FIs’ multi-rail strategies meet this demand by ensuring reliable, seamless service regardless of back-end disruptions—boosting trust and minimizing operational risks.

Consumers are seeking out instant payments.

90%

of consumers would prefer to receive disbursements instantly if given the choice.

PYMNTS Intelligence data shows that 90% of consumers would prefer to receive disbursements instantly if given the choice. Moreover, consumers who do so are more satisfied with their payment experiences. Ninety-four percent of consumers who were offered instant payments and chose to receive them most often reported high satisfaction with this method. In contrast, only 80% of those who could not choose and did not use instant payments were highly satisfied with their most-used method.

Taking a multi-rail approach to instant payments improves the customer experience.

Experts note that having diverse bank payment offerings meets consumers’ needs by ensuring uninterrupted service regardless of the circumstances. This concept applies to non-instant payment rails as well, such as having automated clearing house, debit and credit cards, and even wire transfers and checks in addition to real-time payments. The reliability of having backup services builds consumer trust.

Similarly, multi-rail instant payment strategies reduce operational risk. They enable FIs to provide real-time transactions even when one rail may be experiencing service disruptions. This failsafe is especially key considering the U.S. financial system’s reliance on electronic transfers.

Solution providers are taking note of the opportunity to boost value with multi-rail strategies.

For instance, Aeropay recently partnered with Regent Bank to provide customers and their end users access to automated clearing house (ACH), RTP network and FedNow services. The company noted how offering these multiple rails can make payments more seamless and resilient.

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FIs Adopting a Multi-Rail Approach Benefit From Each Network’s Unique Strengths

By leveraging both the RTP network and the FedNow Service, FIs tap into each network’s strengths—serving a broader range of customers. This multi-rail approach enhances flexibility, allowing institutions to support diverse transaction needs and expand real-time payment reach.

Each payment rail has its own strengths.

While both networks are built to offer always-on service for instant transactions, they are at different stages of growth. The RTP network, which launched more than seven years ago and processes 1.2 million payments per day, counts many of the largest banks and credit unions (CUs) as participants. However, nearly 94% of the network consists of smaller FIs (under $10 billion in assets). The FedNow Service, which launched in July 2023 and processes roughly 14,500 payments daily, prioritizes smaller banks and CUs.

$10M

Current transaction limit on the RTP network, versus $1M (as of this summer) on the FedNow rail

The difference in the maturity of the networks can be seen in the rails’ different transaction limits. The RTP network’s limit amounts to $10 million, dwarfing FedNow’s cap, which will rise from $500,000 to $1 million this summer.

Consequently, a multi-rail approach enables FIs to meet the needs of more customers.

The two systems rely on different operational models and offer different specific features. As such, connecting to both enables financial institutions to cover greater ground. Experts note that the two payment rails can be seen as complementary, enabling real-time payments to extend their reach.

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Expand Reach and Resilience With a Multi-Rail Strategy

To thrive in today’s fast-evolving payments landscape, FIs must look beyond single-rail solutions. A multi-rail strategy is not just a tactical upgrade—it’s a strategic imperative. By embracing both the RTP network and the FedNow Service, institutions position themselves to deliver always-on, consumer-centric service; reduce operational risk; and extend their reach across diverse customer segments. This approach enables flexibility, fosters trust and creates a foundation for long-term growth.

The following insights highlight how forward-looking financial institutions can gain a competitive edge in today’s dynamic payments environment:

Multi-rail is becoming the new standard. Most U.S. institutions offering instant payments now do so through both the RTP network and the FedNow Service, recognizing the complementary strengths of each rail.

Consumer expectations demand speed and reliability. Ninety percent of consumers prefer instant disbursements when offered—and those who receive them report higher satisfaction. Seamless service offers a clear competitive edge.

Multi-rail strategies increase resilience. Leveraging multiple networks potentially provides critical backup and continuity, minimizing disruptions and strengthening operational integrity.

Each network offers unique strengths for financial institutions. The RTP network supports higher-value transactions, enterprise needs and smaller FIs, while the FedNow Service also provides access to FIs of all sizes. Embracing both may expand FIs’ market coverage.

Future-ready institutions are acting now. Those investing in multi-rail infrastructure today are setting the pace for tomorrow’s payment experiences. These are the institutions with the agility to adapt as the ecosystem continues to evolve.

Financial institutions that adopt a multi-rail strategy are not just keeping up—they’re leading the way. Now is the time to align infrastructure, partnerships and processes to deliver the seamless instant payments experience that customers expect.

Financial institutions are joining the RTP network, which already has over 1.2 million payments each day, so their customers can receive immediate benefits from instant payments today. Adopting a multi-rail instant payments strategy makes sense, as most technology providers are offering the ability to easily join both networks.”

James Colassano
SVP, RTP Business Product Management, The Clearing House