Real-time payments (RTP) for commercial banks and financial institutions (FIs) are no longer a future-facing aspiration: they are an imperative in today’s digital economy. According to the 2025 Faster Payments Barometer conducted by the U.S. Faster Payments Council, 80% of survey respondents view faster payments as a "must-have" service.  

The reason for this is simple: Businesses expect their money to move as fast as their data. 

However, despite the fanfare surrounding RTP systems like The Clearing House’s RTP network and the Federal Reserve’s FedNow Service, many U.S. banks—especially regional and community institutions—have struggled to execute. Adoption is climbing, but the runway to ubiquity remains long, uneven, and riddled with challenges. 

 

What Is Holding Banks Back? 

RTP adoption is not simply a matter of flipping a switch. For most financial institutions, it represents a fundamental shift—not just in technology, but in culture, operations, and business models. Several common challenges slow down implementation: 

  • Legacy Systems: Many banks operate on outdated core systems that are ill-equipped to handle the demands of real-time processing. Approximately 34% of U.S. banks believe their core systems cannot manage the speed and volume required by RTP. Another 34% indicated concerns about their systems' ability to support 24/7 availability.1  
     
  • Integration Costs: Connecting to RTP networks demands deep integration into existing systems, including fraud controls, back-office reconciliation, and customer interfaces. Smaller banks often point to integration complexities as a major impediment.2  
     
  • Security Risks: Real-time payments allow for immediate funds transfer, leaving virtually no window to detect and stop fraud. Banks must adopt new risk models and invest in advanced fraud detection technologies, including behavioral analytics and AI-powered monitoring. 
     
  • Revenue Displacement: Some institutions worry that RTP could cannibalize existing fee-based services such as wire transfers and overdrafts. As a result, internal incentives to adopt RTP may be misaligned. 

 

What Banks and FIs Need to Know—and Do—Next 

Despite the hurdles, there is growing momentum. FedNow launched in mid-2023 with 35 participating institutions, and that number continues to rise. The Clearing House’s RTP network also expanded significantly, now reaching over 70% of U.S. demand deposit accounts.3  

But the real test is not connectivity—it is usage. 

To move from pilot projects and partial rollouts to full RTP integration, banks must recalibrate their approach. That includes revisiting technology roadmaps, engaging business clients more directly, and making RTP part of the core value proposition rather than an optional add-on. 

Here are six priorities for banks seeking to advance their RTP maturity: 

  1. Build a Strong Business Case 
    Banks should shift the internal conversation from “How much will this cost?” to “What do we stand to lose if we delay?” Real-time payments can open doors to new services—including just-in-time payroll, emergency disbursements, and instant settlements—that deepen customer relationships and drive new revenue. 
     
  2. Modernize Incrementally 
    A full core system replacement is not always required to support RTP. Many institutions adopt microservices or cloud-based overlays that allow them to route RTP traffic while continuing to modernize the core in phases. This hybrid approach enables progress without paralysis. 
     
  3. Embrace Embedded Security and Risk Management 
    Fraud prevention must evolve to meet RTP’s real-time velocity. That means continuous transaction monitoring, AI-driven anomaly detection, and tighter KYC and AML controls. Staff must also be trained to recognize new fraud vectors that exploit real-time rails. 
     
  4. Educate Commercial Clients 
    Many businesses are unaware of what RTP can offer beyond speed. Banks that educate clients about use cases—such as instant vendor payments, real-time insurance claim payouts, and treasury efficiencies—will see faster uptake and greater customer satisfaction.
     
  5. Make RTP Part of Digital Strategy 
    RTP is not a standalone offering; it must integrate with mobile apps, digital onboarding, cash management portals, and customer support channels. The experience must be seamless and intuitive, as well as be aligned with other digital touchpoints. 
     
  6. Leverage Third-Party Partnerships 
    Collaborating with fintech companies and third-party providers can accelerate RTP integration. These partnerships offer access to advanced technologies and expertise, allowing banks to implement RTP solutions more efficiently and cost-effectively.  

 

Getting from Compliance to Competitive Advantage 

Some banks treat RTP as a box to check for compliance or to keep up with peers. But the real opportunity lies in differentiation. Financial institutions that embrace RTP as a strategic tool can win market share, improve customer retention, and launch innovative products tailored to the demands of a 24/7 economy. 

The road may be rocky—especially for smaller institutions navigating cost and complexity—but the destination is clear. Real-time payments are no longer a curiosity or an option; they are quickly becoming table stakes. Banks that act now to close the gap will be the ones best positioned to lead in the next era of financial services.