US Real-Time Payments Hit High-Growth Phase as Use Cases Multiply

The United States is a big payments market. But big doesn’t always equal fast.

And for years, the U.S. has been an outlier in the global race toward instant money movement, watching markets like the U.K., India and Brazil build real-time payment systems that quickly became foundational.

That lag, however, is lessening. Findings in the latest edition of the “Real-Time Payments World Map,” a PYMNTS Intelligence collaboration with The Clearing House (TCH), reveal that the U.S. real-time payments ecosystem has entered a new phase defined not by instant payment experimentation, but by adoption and scale.

U.S. transaction volumes are projected to reach 8 billion in 2026 and nearly 13.9 billion by 2028, per the report, representing a compound annual growth rate of more than 30%.

Several forces are converging to push the U.S. into its high-growth phase, and one of the stickiest is the expansion of instant payment use cases. While early adoption centered on peer-to-peer transfers and account-to-account movements, today, the scope is far broader.

And that broadening scope is increasingly changing the perception of what constitutes a “normal” payment.

Instant Payments Move From Innovation to Expectation

In markets where real-time systems are mature, instant payments are no longer marketed as a premium feature. They are simply expected. The U.S. is approaching that threshold.

Consumer use cases are diversifying. Real-time payments are increasingly used for bill payments, refunds, and emergency liquidity needs. The appeal is straightforward: immediacy reduces financial uncertainty. For households living paycheck to paycheck, access to funds in seconds rather than days can materially affect financial stability.

Meanwhile, if consumer payments were the entry point, business payments are the scale engine. Companies are adopting real-time payments to improve cash flow visibility and reduce working capital constraints, among other benefits. Instant settlement eliminates the lag inherent in ACH and wire systems, allowing businesses to operate with greater precision.

Payroll, insurance payouts, gig economy disbursements, supplier payments, and government transfers are all moving onto real-time rails, the report found.

Importantly, this growth is not limited to large corporations. Small and medium-sized businesses, historically underserved by legacy payment systems, stand to benefit disproportionately from faster access to funds.

Perhaps the most transformative growth area is the public sector. The use of real-time payments for government disbursements such as disaster relief marks a turning point. Traditionally, government payments have been slow, fragmented and costly. Instant payments offer a way to deliver funds quickly and efficiently, particularly in times of crisis.

Real-time tax refunds, benefits distribution, and stimulus payments could also fundamentally reshape how governments interact with citizens.

Read the report: Real-Time Payments Redraw North America’s Financial Map

From Parallel Rails to Core Infrastructure

The U.S. market is unusual in that it now operates two interoperable but distinct real-time payment systems. The Clearing House’s RTP network, launched in 2017, built early momentum among large banks and FinTechs. FedNow, introduced later by the Federal Reserve, is rapidly broadening access, particularly among smaller financial institutions and public-sector entities.

This dual-rail dynamic is proving to be catalytic in the U.S. rather than duplicative. Together, the rails are creating a competitive infrastructure layer that is both expanding reach and driving innovation. After all, the U.S. has now reached a critical mass of financial institutions across both rails. And as more banks connect, the utility of instant payments increases exponentially, making it easier for businesses and consumers to rely on them.

At the same time, API-first architectures and ISO 20022 messaging frameworks are making it easier for fintechs and enterprises to integrate real-time capabilities into existing systems. The result is a shift from bespoke implementations to scalable, repeatable deployments.

Looking ahead, instant payments’ next phase of growth will not be driven solely by adoption, but by dependency. When real-time payments become embedded in critical workflows — payroll, supply chains, public disbursements — their absence becomes untenable.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.