Faster payment networks got a boost in Q2 but now face heightened competition from FedNow

The data: Demand for real-time (RTP) and faster payments is on the rise.

  • The Clearing House’s RTP Network processed 58 million transactions in Q2 2023, up from 41 million from the same period last year, per a press release. The value of the transactions increased as well, reaching $29 billion in Q2 2023, up from $18 billion the year prior.
  • Nacha’s Same Day ACH payments totaled 199.4 million in Q2 2023, up 7.7% year over year (YoY), per a press release. The value of the payments hit $612.6 billion, an increase of 26.1% YoY.

What’s next? The Federal Reserve rolled out the long-awaited FedNow instant payments service last week. It’s too early to predictFedNow’s uptake, but the service brings new real-time payments competition to RTP Network and Same Day ACH.

  • FedNow will likely offer more competitive pricing than the other networks, because it can’t turn a profit as a government-run entity.
  • These lower fees could test RTP Network’s and Same Day ACH’s brand loyalty.
  • But on the other hand, FedNow will also likely fuel even more demand for faster payments—a rising tide that can lift RTP Network’s and Same Day ACH’s boats, too.