Product Corner: How To Facilitate Real-Time Payments with VoPay

Real-Time Payments (RTP®), developed by The Clearing House®, is a payment network that delivers instant, reliable, and transparent money transfers. RTP® payments have been brought into the VoPay network of payment rails not only to expand our real-time payment offerings but to also complement our compliance and risk offerings.

This blog provides an overview of RTP®, its functionality, and how it fits into the VoPay ecosystem.

What Is RTP® and How Does It Work?

The RTP network facilitates instant, push-only transactions between U.S. bank accounts. Unlike traditional payment methods such as ACH or wire transfers, RTP processes payments immediately, making funds available to the recipient in real-time, any time of the day or year.

Key Features of RTP®

• Instant Settlement: Payments clear within seconds, reducing delays.
• Push-Only Payments: Transactions are initiated by the payer, eliminating the risk of reversals or insufficient funds.
• Data-Rich Messaging: RTP leverages ISO 20022 to include detailed information like invoice numbers or order references with each transaction.
• Round-the-Clock Access: The network operates continuously, including weekends and holidays.

These features make real-time payments a reliable option for businesses seeking faster, more efficient payment solutions.

Why Are Real-Time Payments Gaining Momentum

In 2024, the RTP network processed over 340 million transactions totalling $ $246 billion,  reflecting its rapid adoption across industries. The growing demand for speed, transparency, and reliability in financial transactions has made real-time payments a preferred choice for businesses.

Essentially, real-time payments offer a faster, more reliable, and predictable payment experience for all.

Key Benefits of RTP

Improved Cash Flow
Instant payments give businesses quicker access to funds, enabling them to:

• Meet payroll deadlines.
• Pay suppliers promptly.
• Disburse loans to customers faster.

Enhanced Transparency
Each RTP transaction includes detailed data such as invoice numbers, payment references, and confirmations. This:

• Simplifies reconciliation and reporting processes.
• Reduces the risk of errors caused by manual tracking.
• Improves communication between payers and payees.

24/7/365 Availability
Unlike traditional banking systems that are limited by hours of operation or holidays, RTP enables payments to be sent and received any time, day or night. This:

• Supports businesses operating across different time zones.
• Reduces downtime caused by weekend or holiday closures.
• Ensures payments are processed when they’re needed most.

How RTP® Works on VoPay’s Platform

VoPay integrates RTP into its ecosystem, offering businesses two primary ways to access this payment rail:

1. Payment Portal:
   VoPay’s centralized dashboard allows businesses to send RTP payments, view transaction histories, and manage workflows in one place.
2. Payment API:

Build out your own fully white-labelled payment solution, giving you the flexibility to move funds through the RTP Network while maintaining your brand identity

Both methods ensure businesses can leverage RTP effectively, whether for occasional transactions or fully integrated payment processes.

Features of RTP® on VoPay’s Platform

1. ISO 20022 Messaging for Better Reconciliation

With RTP, businesses can send payments accompanied by detailed transaction data, such as:

• Invoice numbers.
• Order IDs.
• Payment confirmations.

This level of detail simplifies reconciliation and reduces manual tracking efforts.

2. Unlimited Virtual Accounts

VoPay’s virtual account technology helps businesses organize funds by branch, department, or purpose.
Example: A company with multiple regional offices can create separate wallets for each branch, simplifying payroll and expense management.

3. Scalability with High Transaction Limits

Starting in February of this year, RTP will support transactions of up to $10 million, making it suitable for high-value payments in industries like real estate and B2B operations. Payments can be sent 365 days per year at any time of the day with no cut-off times or batch processing rules to adhere to.

Practical Use Cases for Real-Time Payments

Payroll

RTP enables businesses to send wages instantly, ensuring employees are paid on time, even on weekends or holidays.

Lending

Loan disbursements often require speed. With RTP, lenders can deliver funds instantly, improving customer satisfaction and operational efficiency.

Gig Economy

Platforms can attract and retain workers by offering real-time access to earnings after completing jobs.

Supply Chains

Immediate supplier payments help prevent delays in goods delivery, maintaining smooth operations.

Limitations of RTP® 

While RTP offers significant advantages, it has some limitations:

• U.S.-Only Network: Transactions are limited to accounts within the United States, and both sending and receiving banks must participate in the network.
• Push-Only Payments: RTP supports only payer-initiated transactions, making it unsuitable for pull-based payment models like subscriptions.
• Transaction Limits: While the $10 million limit (effective February 2025) accommodates most use cases, certain industries may require higher thresholds.

Businesses can combine RTP with other payment methods, such as ACH or Push-to-Card, to create a comprehensive payment solution.

Access Real-Time Payment Rails With VoPay 

Through VoPay’s platform, real-time payments become an accessible, scalable solution for businesses of all sizes. However, RTP® is just one part of VoPay’s broader real-time payment ecosystem. Depending on your business needs, VoPay provides additional options to meet your payment goals:

• Mastercard Send®: Expand your reach with real-time payments to over 50 countries. This solution allows you to send funds instantly to multiple endpoints, including cards, bank accounts, digital wallets, and even cash pickup locations—ensuring flexibility for global transactions.
• VoPay Instant: Empower Canadian businesses with fast, near-real-time bank account payments. Designed for time-sensitive transactions, this option is ideal for industries requiring immediate access to funds, such as lending, payroll, or insurance disbursements.
• FedNow: The latest real-time payment method to hit the U.S. market, FedNow facilitates instant payments over a secure network backed by the U.S. Federal Reserve.
• Interac e-Transfer for Business: Enable fast, secure, and efficient money movement for Canadian businesses with Interac e-Transfer for Business, fully integrated through VoPay’s API. 

Whether you’re operating domestically or globally, VoPay’s Fintech-as-a-Service ensures you have the tools to move money when and where it’s needed, meeting the expectations of today’s fast-paced economy.

Ready to explore how real-time payments can transform your operations? Contact us today to learn more about our comprehensive suite of financial solutions.