What is real-time payment infrastructure?

Real-time payment infrastructure is the technology layer that connects businesses to instant bank payment rails. It handles message formatting, network routing, status tracking, and exception management so platforms can offer instant payments without building direct connections to each rail.

What is the difference between RTP and FedNow?

The RTP Network, operated by The Clearing House, launched in 2017 and connects 550+ financial institutions. The FedNow Service, operated by the Federal Reserve, launched in 2023 and connects 1,400+ institutions. Both settle payments in seconds. Dwolla routes to the optimal rail automatically.

How fast are real-time payments?

Payments on the RTP Network and FedNow Service typically settle within seconds, 24/7/365. Unlike ACH, which batches payments and settles in one to three business days, real-time rails provide immediate finality and confirmation.

Real-Time Payment Infrastructure

The Benefits of Instant Payments

Consumer demand for instant transfers and more convenient payment options is on the rise. Buyers expect immediate gratification through seamless digital transactions. Traditional payment methods, like cards, checks and legacy ACH files, no longer meet the needs of consumers or businesses who require real-time payment processing.

Instant payments aim to bridge this gap by providing a seamless connection between digital transactions and the actual movement of funds, facilitating payment automation.

Instant payments with Dwolla clear and settle almost immediately. They dramatically improve cash flow by providing near-immediate access to funds, unlike traditional payment methods that may take days to settle. This eliminates delays, allowing businesses to use funds immediately for payroll, expenses or reinvestment.

Instant payments can also streamline operations by reducing the need for manual payment automation and reconciliation, thanks to the extensive remittance data accompanying each transaction. Their 24/7/365 availability increases convenience and flexibility for businesses.

Send Funds in Real-Time

Send payments to bank accounts via the RTP® Network and FedNow® Service.

Improve Payment Transparency

Instant payments include immediate, detailed remittance data with each transaction, providing far greater visibility into payments than traditional methods.

Intelligent Orchestration

Initiate an instant payment, and Dwolla’s API will use intelligent routing to automatically select the best instant payment rail (RTP or FedNow) based on the recipient's bank.

“RTP with Dwolla has given us such a competitive advantage. Before, drivers would wait up to 24 hours to have money in their bank account. For some, that means their business stops. With RTP, funds are in their account in minutes. RTP is the preferred payment method we keep hearing from our clients and Dwolla has simplified that for us.”

Financial ServicesChief Executive Officer

Instant Payments Explained

Instant payments are a type of pay by bank transaction that is processed and settled in real-time or near-instantaneously, revolutionizing the speed at which businesses can operate. In the United States, two primary systems facilitate instant transfers: the FedNow Service and the Real-Time Payments (RTP) network.

The RTP network, launched by The Clearing House in November 2017, has grown significantly. In fact, the RTP network’s real-time payment processing is available to financial institutions that hold close to 90% of U.S. demand deposit accounts. Launched by the Federal Reserve in July 2023, the FedNow Service provides an alternative instant payment system for U.S. financial institutions. It has also seen incredible growth since its launch, recently surpassing 1,000 financial institutions participating in FedNow.

The adoption of instant transfers in the United States is rapidly increasing. According to a U.S. Bank study, over 40% of companies exceeding $100 million in revenue already use the RTP network to conduct instant transactions. The study also revealed nearly 70% of businesses anticipate adopting instant payments through RTP or FedNow within the next two years.

How Instant Payments Work

Instant payments are a payment method that allow for near-instantaneous transfer processing via the RTP network and FedNow Service. Dwolla’s intelligent orchestration automatically selects the best instant payment rail based on the recipient's bank.

Key Points to Note for Instant Transfers:

Available for credit transfers only
Export deadline: None
Transfer processing time: Funds available within minutes
Processed 24/7/365 (business days, weekends and banking holidays)
Learn more about Dwolla's transfer timelines in our developer documentation.

Instant Payouts for the Gig Economy

Independent driver-contractors need fast access to capital to grow their business and meet the everyday challenges presented to them: car repairs, rising gas prices, tollway fees, new technology and more.
They needed an API with clear documentation that they could integrate quickly and support their various funds flows.
They were able to integrate with Dwolla’s single API in less than 20 days.
After partnering with Dwolla and adding RTP, this Fintech saw a 75% year-over-year increase in transaction volume, an 80% YOY increase in users created and a 24% YOY increase in active users.

Image of taxi drivers and semi truck, with Dwolla hexagons in the background.

Real-Time Payment Processing for Fintechs

This Fintech launched their application with the objective to help their users access credit in a more equitable way.
Because of the ongoing competition with credit cards, where funds are available right away, they understood the need to shorten the transaction timeline to remain competitive.
Since implementing Real-Time Payments with Dwolla, they have seen a 1,440% increase in transactions and a 46% increase in active users.

Instant Payments in Action

BasicBlock Gets Drivers Paid in Real Time — instant transfers via RTP See all stories →

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Gain a Competitive Edge with Instant Payments

The Benefits of Instant Payments

Instant Payments Explained

How Instant Payments Work

Instant Payouts for the Gig Economy

Real-Time Payment Processing for Fintechs

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