58% of US Banks Use Both RTP and FedNow for Instant Payments

Financial institutions are rapidly abandoning the notion of picking a single lane in the real-time payments highway, instead opting for a dual-track approach to meet evolving consumer and business demands.

A recent report titled “Real-Time Payments Drive Demand for Multi-Rail Strategy” reveals a shift in the U.S. financial landscape: banks are embracing a multi-rail strategy for real-time payments, no longer viewing adoption as a choice between The Clearing House’s private RTP® network and the Federal Reserve’s public FedNow® Service. This strategic pivot is driven by the imperative to enhance speed, flexibility, and customer satisfaction. By leveraging both networks, financial institutions (FIs) can tap into their respective strengths, ensuring reliable, seamless service regardless of back-end disruptions, thereby boosting trust and minimizing operational risks.

The report, produced by PYMNTS and The Clearing House, highlights that this multi-rail approach enhances flexibility for FIs, enabling them to support diverse transaction needs and expand their real-time payment reach across a broader range of customers. This shift reflects rising consumer expectations for seamless, always-on payment experiences and the critical need for resilience in payment infrastructure.

Key findings from the report underscore the momentum behind this multi-rail adoption:

Fifty-eight percent of U.S. financial institutions that enable instant payments do so through both the RTP network and the FedNow Service, indicating that a multi-rail approach has become the norm rather than the exception. This marks a change from earlier views, where choosing between the two rails was seen as a barrier to adoption.

Consumer preference for speed is overwhelmingly clear, with 90% of individuals stating they would prefer to receive disbursements instantly if given the choice. Moreover, 94% of consumers who chose instant payments reported high satisfaction, significantly higher than the 80% satisfaction reported by those who did not use instant payments.

The distinct capabilities of the two networks are being leveraged by FIs: The RTP network supports transactions up to $10 million, while the FedNow Service’s cap will rise from $500,000 to $1 million this summer. This difference in transaction limits, alongside the RTP network’s longer operational history and higher daily payment volume (1.2 million vs. FedNow’s 14,500), illustrates how combining them allows FIs to meet a wider array of customer needs.

Beyond these statistics, the report emphasizes that a multi-rail strategy increases resilience, providing backup and continuity that minimizes disruptions and strengthens operational integrity. This is particularly vital given the U.S. financial system’s reliance on electronic transfers. The sources note that connecting to both systems allows financial institutions to cover greater ground, seeing the two payment rails as complementary rather than competitive.

These strategic imperatives position institutions to deliver always-on, consumer-centric service, reduce operational risk, and extend their reach across diverse customer segments, laying a foundation for long-term growth and a competitive edge in today’s payments environment.