How do real-time payments work?
Originally published on American Banker.
Real-time payments have been part of the lexicon for years, now that The Clearing House’s RTP network is six years old and the Federal Reserve is nearing the launch of its FedNow system. But what makes these systems work, and how much of an improvement are they over the payment options that are widely used today?
Real-time payments enable users to transfer money within seconds, making the process quicker and more efficient. Unlike traditional payment methods, which can take days to process, real-time payments allow users to receive money instantly, regardless of the time of day or day of the week. As the popularity of this technology grows, the payments industry is expected to experience significant growth. Read more here.