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Episode Summary

In this episode of Wrestling Payments, host Joe Casali from NEACH sits down with Rusiru Gunasena, the head of the RTP network at The Clearing House, to dive into the evolution and current state of real-time payments in the U.S. Rusiru highlights the journey of RTP since its launch in 2017, emphasizing its growth and the increasing adoption among financial institutions. He shares insights on the network’s milestones, including handling billion-dollar days and expanding its reach to over 650 institutions, primarily community banks and credit unions.

Rusiru also discusses the various use cases that are driving RTP's success, such as B2B transactions, account-to-account transfers, and instant wage access for gig economy workers. He explains how RTP's real-time settlement and 24/7 availability offer significant advantages over traditional payment methods, making it an essential tool for modern financial transactions.

The conversation touches on the importance of interoperability with other networks, including the newly launched FedNow, and the ongoing collaboration with the Federal Reserve. Rusiru concludes by encouraging financial institutions not yet on board with RTP to start with a receive-only approach to experience the benefits of real-time payments.

Guest-at-a-Glance
Guest: Rusiru Gunasena
What he does: Vice President, RTP Product Management & Strategy
Company: The Clearing House RTP
Noteworthy: Rusiru Gunasena: Leader in real-time payments, overseeing the RTP network at The Clearing House, with extensive experience in payments and fintech.

 Where to find Rusiru: LinkedIn

Key Insights
Real-Time Payments Transforming Financial Transactions

Real-time payments (RTP) are revolutionizing how businesses and consumers handle transactions. With its 24/7/365 availability, RTP allows for instant settlement, eliminating the delays and uncertainties associated with traditional payment methods like checks or ACH. This immediacy benefits both businesses and consumers, ensuring that funds are transferred and accessible in real time. The RTP network’s ability to support high-value transactions, now up to $1 million, opens up new possibilities for various sectors, including B2B transactions, insurance payouts, and instant wage access for gig economy workers.

The Growing Importance of Interoperability in Payment Networks

As new payment networks like FedNow enter the scene, the need for interoperability between these systems and established networks like RTP becomes crucial. Interoperability ensures that institutions and customers can transact seamlessly across different platforms, enhancing the efficiency and reach of real-time payments. While RTP was the first to market, ongoing collaboration with the Federal Reserve and other stakeholders is vital for aligning features and ensuring that the benefits of real-time payments are universally accessible, regardless of the network.

Request for Payment: A Game Changer for Bill Payments

The introduction of the Request for Payment (RFP) feature within the RTP network is set to transform bill payments. Unlike traditional methods where payments might be delayed or susceptible to fraud, RFPs allow consumers to receive and authorize bill payments securely through their bank’s channels. This feature not only enhances security but also gives consumers greater control over their payments, allowing them to authorize transactions only when they are ready. As this feature evolves, it is expected to bring significant improvements