A number of the financial institutions participating in The Clearing House’s RTP network are now offering request for payment (RfP) over the network, allowing broker dealers, billers and suppliers to request a payment from their customers through secure bank channels and receive an instant payment from both consumers and businesses.
RfP puts the payer in control of the transaction, allowing them to review the request and either pay or decline it. The payment happens in seconds, with the biller receiving access to immediate and irrevocable funds and the payer receiving immediate confirmation the biller has received their payment.
Bank of America, BNY Mellon, Citi, Fifth Third, J.P. Morgan, PNC Bank, U.S. Bank and Wells Fargo are among the RTP participants offering RfP capabilities. Other financial institutions, such as Bridge Community Bank and North American Banking Co., have received certification to send RfP messages.
Numerous technology providers, including FIS, Fiserv, Jack Henry, and Open Payment Network, have received certification to provide RfP to their financial institution customers who are RTP participants.
“Expanding RfP usage across financial institutions is an exciting step toward wider RTP adoption,” APEX Fintech Solutions (AFS) Chief Commercial Officer said. “Through the Clearing House’s RTP network and with U.S. Bank as AFS’s bank partner, we can help eliminate ACH return risk for retail broker-dealers and their investors.”
“We’re seeing a significant evolution in digital payments, which are increasingly instant, embedded and connected to the processes, applications and software customers use every day,” U.S. Bank Payment Services Vice Chair Shailesh Kotwal added. “Giving businesses the ability to request or move money on behalf of their customers in real time creates a better experience, increasing satisfaction and providing a competitive edge for businesses.”
The Clearing House has worked with RTP participants to enhance the risk management framework for RfPs to mitigate risk of potential misuse. The initial list of use cases that will be allowed on the network include consumer bill pay, business-to-business payments and account-to-account transfers. As market adoption grows, permitted use cases are expected to expand to encompass all types of traditional and digital payment experiences.
“Businesses have been looking for more efficient and user-friendly ways to send bills and invoices to customers, while customers have been searching for a better payment experience that gives them more control,” The Clearing House Senior Vice President of RTP Product Management Rusiru Gunasena said. “RfP provides a way for billers to efficiently and securely send bills and invoices to customers through a