We have seen many new technologies emerge in payments. Most of the innovation has been based around traditional payment processing credit/debit rails. From issuing to acceptance, merchants, acquirers and issuers have improved the way we accept, handle and settle transactions but the core functions are virtually unchanged. Crypto-currencies have struggled with mainstream adoption while its underlying technology of blockchain continues to explore various applications. Various disruptive systems have struggled to gain adoption given payments perpetual chicken and egg ecosystem. In the world of B2B payments, we believe the landscape is about to change drastically.

Real Time Payments(RTP) was born from a consortium of 25 banks and launched in November 2017. It is also the first new payment rails deployed in 40 years. It is a completely new, closed loop infrastructure with massive, market-wide applications. Payment applications like Zelle, Venmo and Square Cash have gained popularity with in Person to Person(P2P) transactions, we believe RTP will have the same effect in B2B payments.

RTPs ownership structure, built on and by The Clearing House, and the fact that 50% of US customers will be given access natively through their existing banks interface create the potential for a massive adoption and deployment.  RTP is posed to make a substantial impact. Funds are secure, can be requested or pushed and happen immediately without waiting for a batch. They also meet Good Fund Laws required by certain industries like real estate and follow the ISO 20022 message specifications.

While the technology is new and use is limited, the applications and impact potential seem to be enormous.

Here is the Mastercard Deck for RTP https://www.mastercard.us/content/dam/mccom/en-us/business-payments/documents/real-time-payments-whitepaper-sept-2018.pdf