The Real-Time Payments (RTP) network managed by The Clearing House has seen its transaction volume double over the last 18 months, reaching one billion transactions in a recent period. A key factor contributing to this growth is an increase in the transaction limit, which now allows payments of up to $10 million each since February.

In parallel, The Federal Reserve’s instant payment service, FedNow, is enhancing its own capabilities to remain competitive with RTP. Starting from July, FedNow will introduce a higher cap for credit transfers, setting the new limit at $1 million for higher-value transactions like business-to-business supplier payments, real estate deals, and payroll account funding. The default transaction limit will stay at $100,000.

Banks Favor Higher Transaction Limits

Higher transaction limits have significantly boosted the adoption of instant payment services. According to a study by Red Compass Labs, more than 80% of senior payments professionals in U.S. banks believe that increasing the RTP transaction limit to $10 million has enhanced its attractiveness. Among smaller banks—those with between 500 and 2,000 employees—the percentage is even higher at 88%. Additionally, 84% of these banks think that raising FedNow’s cap will further improve its appeal.

The Clearing House has identified several use cases where the increased limit can benefit businesses. These include commercial and high-value residential real estate payments, merchant settlements, supply chain payments, and cash consolidation. RTP’s first $10 million transaction was processed on behalf of Computershare, a global transfer agent, to another of its company accounts.

Consumer Demand on the Rise

The demand for instant payments is escalating. A study by Red Compass indicated that nearly half of the surveyed banks are dealing with overwhelming demand from corporate clients—three times the figure reported in last year’s survey. Mid-sized banks, especially those with between 2,000 and 10,000 employees, are experiencing significant pressure.

Surprisingly, consumer demand for instant payments is also on the rise. While only 11% of respondents in last year’s survey reported overwhelming demand from retail customers, that figure has surged to 43% this year. For retail consumers, it is the largest banks—those with more than 50,000 employees—that are facing the most pressure.

Many banks are also becoming increasingly concerned about competition from fintechs, neobanks, and services like Zelle. About two-thirds of the largest banks say their instant payment decisions are heavily influenced by these competitive pressures.