With real-time payments perhaps on the cusp of becoming an essential payment service, Navy Federal Credit Union, which rung up $2.7 million in real-time deposits on its first full day on the RTP network from The Clearing House Payments Co. LLC, is using Alacriti to connect to the network. Bridgewater, N.J.-based Alacriti is one of 21 RTP technology providers listed on the TCH Web site.
Earlier this year, the RTP network surpassed 1 million payments on a single pay, while the competing FedNow’s roster of banks and credit unions now totals 285, according to a Fed Web site, up from 108 in October. The RTP network debuted in 2017 and now counts more than 370 participating financial institutions.
Service providers are a key way for financial institutions to connect to real-time payments services. Both the RTP network and the FedNow service from the Federal Reserve rely on them to expand the reach of real-time payments. With approximately 9,000 U.S. financial institutions, ubiquitous bank access to real-time payments services will be some time in coming. It’s something that both providers view as necessary for instant payment service to become an everyday event.
As Digital Transactions reported in October, persuading banks and credit unions to enroll in either or both real-time payments services is vital. “For instant payments to be successful in the United States, the networks need to have as many participants as possible,” said Scott Anchin, vice president, operational risk and payments policy at the Independent Community Bankers of America, a Washington, D.C.-based trade group.
Alacriti says Navy Federal Credit Union, with $166 billion in assets and more than 13 million members, is using the Orbipay Payments Hub for its RTP connectivity. That service also provides access to FedNow, ACH, Visa Direct, and Fedwire services.