On 9 February 2025, operator of the largest instant payment system in the US,
The Clearing House, will raise the individual transaction
limit to $10 million. This week, it was also revealed that the RTP network surpassed one billion payments, just 18 months after crossing the 500 million transaction mark.
After a gradual uptake – taking over five years to reach half a billion payments – it is evident that the network’s
accelerated growth over the last year and a half showcases a growing demand for faster, more transparent, and
as The Clearing House puts it: “always-available payment solutions for consumers, businesses, and the financial community.”
The increased limit will support growth in areas such as real estate, supply chain payments, and B2B transactions that require larger transaction amounts. The RTP transaction limit was increased from $100,000 to $1 million in April 2022, but industry sentiment
dictated that further change was needed.
Now, higher-value residential real estate payments can be sent at any time of day, allowing for closing after business hours or on weekends. Merchants will also not be forced to wait a day or more to receive payments, and in the same way, manufacturers will
be able to pay suppliers instantly.
By paying at a faster rate, businesses will be able to move funds to accounts immediately, optimising liquidity and consolidating it in real-time, ready for the end of a month or quarter.
What the transaction limit increase means for the US fintech industry
It is no question that this development will have a significant impact on the fintech industry in the US and for organisations that operate with those in the US. The $10 million limit for
real time payments could reshape the landscape, offering new opportunities for growth, innovation, and competition, while also
presenting challenges for security and regulatory compliance.
- Improve efficiency
High-value transactions over the value of $1 million could not be processed in real-time before this week. Businesses, institutional clients, and high-net-worth individuals are now able to leverage the RTP network to send large sums of money instantly. Further,
now that a wider range of transactions can be processed instantly, high-volume industries can now also be potential customers for fintech firms or companies leveraging this new development.
- Bolster innovation
A wider spectrum of products and services can now be created and offered by fintech companies because of this higher limit. Corporate clients that require enhanced and improved treasury management tools to handle larger sums are also more likely to become
more competitive and gain market share. Fintech firms that specialise in automation with emerging technologies will also be able to integrate
AI-driven fraud detection and compliance monitoring into liquidity management systems.
- Resolve cross border
Making sure cross border payments can be made at the same rate as domestic payments has been an age
old problem. By implementing real-time payments for transactions over $1 million, this removes reliance on traditional intermediaries, and the customer experience that individuals are used to for their personal, domestic payments, can now be close to the same
for larger organisations moving money. With this, the cost of international payments could also be reduced because transactions could be settled directly between parties.
- Reinforce security
With larger transactions now happening in real-time, concerns around fraud may also heighten as detection systems may need to be enhanced to keep pace with the accelerated nature of payments being made following this announcement. In addition to accommodating
higher transaction limits, compliance with AML and KYC regulations may also require advanced
technology due to newfound complexity.
- Partner with fintechs
If fintech firms offer real time payment solutions and traditional banks do not, the legacy institutions are at risk of losing market share and being disintermediated. Both consumers and businesses want to bank with agile financial players: instant payments
allow hundred year old banks to become flexible in nature and serve customers in the way they want to be served. Fintech firms and banks must collaborate to ensure liquidity management and treasury services are as optimised as possible.