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As of 2024, approximately 51% of U.S. businesses utilize the RTP network and FedNow to facilitate instant payments. Projections indicate that within two years, about 68% of U.S. businesses will have adopted these government-backed digital payment services.
According to a U.S. Bank study, government digital payment initiatives are gaining significant traction among U.S. businesses and consumers. This year, more than half of American companies integrated the RTP network and the FedNow service into their operations.
RTP (Real-Time Payments) and FedNow are real-time payment processing platforms developed by The Clearing House and the U.S. Federal Reserve, respectively. Both services are available to all federally insured depository institutions. As of 2024, over 480 financial institutions in the U.S. use RTP, while more than 900 have adopted FedNow.
U.S. Bank analysts found that in 2024, 51% of U.S. businesses integrated instant payment technology into their processes, transferring digital payments through RTP and FedNow. This represents a significant increase from 42% in 2023 and approximately 38% in 2022.
The U.S. Bank report also highlighted that eight out of ten businesses surveyed expect to be using instant payments within the next two years. Furthermore, the study reveals that over 40% of companies with annual revenues exceeding $100 million are leveraging the RTP network.
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The U.S. Bank study is based on a survey of more than 2,000 senior financial executives in the U.S.
The rising trend in digital payments is further underscored by a PYMNTS Intelligence report, which forecasts that within the next two years, at least 68% of U.S. businesses will be making instant payments via RTP or FedNow. The industries showing the highest activity include:
- Consumer goods and retail (81%);
- Hospitality and entertainment (75%);
- Healthcare (70%).
However, despite the potential of digital payments to improve liquidity management and customer engagement, traditional payment methods remain in high demand. For example, check payments account for about 15% of B2B payments in retail and manufacturing, and 21% in real estate transactions.
PYMNTS Intelligence analysts also emphasize that the popularity of instant payments is directly linked to resolving the technological and operational challenges associated with implementing such systems. According to their report, the main barriers to adopting digital payments include:
- High cost of system upgrades (82%);
- Risk of data leakage (48%);
- Lack of experience in combating financial crime (34%).
The FedNow service was officially launched in July 2023. The U.S. Federal Reserve positioned the service as an interim alternative to Central Bank Digital Currencies (CBDCs).
