logo
Real-Time Payments Are Soaring In The U.S.

Real-Time Payments Are Soaring In The U.S.

Forbes17-07-2025
Close up of network data flowing on black background. getty
The U.S. was slow getting to real-time payments, but the businesses and individuals are taking them up in a big way, using primarily the private sector RTP rails from The Clearing House (TCH). The number of real-time payments and their size of the payments has risen sharply in the last quarter.
TCH which operates the largest instant payments system in the United States said today that it averages 1.18 million payments each day, worth $481 billion, a 195% leap in value from the previous quarter. Since it increased the maximum transaction limit from $1 million to $10 million in February, the average transaction has grown from $842 in January to more than $4,000 by June, a 376% increase.
'We currently have over 30,000 businesses that are originating RTP payments on the network each and every month and over 6 million consumers,' said Jim Colassano, senior vice president of RTP Business Product Management at TCH.
Jim Colassano, SVP of RTP Business Product Management at TCH David Beyda, Courtesy The Clearing House
'They're using it not only because of the speed but because of the breadth of functionality that it offers. It's available 24 hours a day. You can make a payment precisely when you want to make it. So, if you want to make an instant payment next Thursday at two o'clock in the morning, you can do that.'
Some of the new uses of RTP, such as payroll, have surprised him.
'I thought that once we got to direct deposit of payroll and payroll cards, we were done.'
The gig economy and earned wage access as an alternative to payday loans have changed that. Gig workers can get paid immediately after their shift, and increasingly through earned wage access workers can get paid for work they have done before the traditional payroll schedule.
The precision of RTP has also attracted small businesses concerned about cash flow. They can specify the exact time a payment is made, so they don't have to send a check several days ahead because they don't know how long a check will take in the mail and then to clear.
Corporations are using RTP to improve customer experience.
So for example if they have an irate customer on the phone they can offer to settle a dispute and before the customer gets off the phone the money is in her account.
'Technology firms are creating a more dynamic user experience,' said Colassano, 'and we are seeing a generational shift in expectations.'
ACH, which was developed in the early. 1970s, was built to move funds in bulk and in batch while today's users increasingly expect immediacy in payments.
RTP funds are irrevocable, so the receiver doesn't have to worry non-sufficient funds or a sender trying to cancel the transaction and demand the money back. The receiver can draw on the funds immediately and the sender receives confirmation the payment has been made — seven days a week, nights, weekends and what used to be called bank holidays.
The cost for this varies by bank, but the network charges 4.5 cents per transaction, a price it lists on its website. Only banks can access the network, and they are free to mark up the price of transactions.
RTP makes a big difference to banks in time sensitive businesses like mortgages which have had to deal with a bank payment system that worked on East Coast hours.
'When you're closing on one coast and your financing agent is on the other coast, it gets problematic and presents an incredible amount of risk to the industry,' Colassano said.
Using RTP that operates 24 hours a day just eliminates the problem of time zone differences. About 45 percent of the transaction on the RTP network occur outside regular banking hours, said Gregory MacSweeney, spokesman for TCH.
Real estate deals made up some of those transactions — closings, earnest fund refunds, construction loans payouts, fees to agents and to title companies, all manned by professionals who often work outside regular office hours.
It's also used by innovative car companies like Cross River Bank and Carvana which sell cars through a combination of internet listings and direct delivery to a customer. They use RTP and its request for payment to transfer funds immediately upon pickup or delivery of a vehicle.
In the early days of RTP, Colassano had to explain to banks and corporates what it was and how it worked. Now he no longer has to explain instant payments, and instead he talks about use cases, including transferring funds from closed loop systems to bank accounts.
One of their first big users of the real-time payments network was PayPal. Other closed loop systems with digital wallets, such as gaming sites, have also made use of RTP.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Better Quantum Computing Stock: IonQ vs. Rigetti Computing
Better Quantum Computing Stock: IonQ vs. Rigetti Computing

Yahoo

time11 minutes ago

  • Yahoo

Better Quantum Computing Stock: IonQ vs. Rigetti Computing

Key Points IonQ and Rigetti Computing have developed fundamentally different methods to create quantum computers. IonQ aspires to build the internet of the future while Rigetti focuses on commercializing its superconducting qubit technology. Neither IonQ nor Rigetti are profitable, although they have amassed large sums of cash to fund their operations. 10 stocks we like better than IonQ › The quantum computing industry is a promising area to invest in. Quantum machines can complete complex calculations in minutes that would take classical computers centuries, thanks to the power of quantum mechanics. In the sector, IonQ (NYSE: IONQ) and Rigetti Computing (NASDAQ: RGTI) are among the prominent players. IonQ uses ions to power its quantum machines while Rigetti employs the traditional superconducting qubits process. Both have seen impressive share price increases over the past year. IonQ stock is up over 400% through July 23 while Rigetti climbed more than 1,000% in that time. Is one a better investment in the nascent quantum computing field? Examining these businesses in more detail can help to arrive at an answer. Rigetti Computing's tried-and-true tech Rigetti uses a proven method of producing qubits. Qubits are a quantum device's equivalent to a classical computer's bit. But while bits represent a zero or one, the properties of quantum mechanics mean qubits can be both at the same time, enabling orders of magnitude faster processing speeds. Superconducting qubits offer several advantages. They can be manufactured using existing semiconductor chip processes, and can complete calculations faster than ion-based quantum machines. Rigetti hopes to gain greater commercialization with the latest version of its quantum computer, the Ankaa-3 system, which launched at the end of 2024. However, the technology isn't cheap. Superconducting qubits require special cryogenic equipment to keep temperatures colder than outer space. This is necessary for qubits to maintain stability long enough to perform calculations before they break down. As a result, the company exited the first quarter with an operating loss of $21.6 million on sales of $1.5 million. The loss is 30% greater than the previous year while Q1 revenue plunged 52% year over year. This combination of falling revenue and rising costs is unsustainable over the long run. That's why Rigetti executed a $350 million equity offering that helped it build up a stockpile of $575 million in cash, cash equivalents, and investments with no debt as of June 11. This cash hoard should sustain the company's operations in the short term, but it will need to produce revenue growth to build a sustainable business. IonQ's lofty ambition to remake the internet IonQ's ion-based method holds several advantages over superconducting qubits. Its tech can operate at room temperature, eschewing the need for cryogenic equipment. The technology also offers low error correction rates. Because qubits quickly break down, quantum computers are prone to calculation mistakes that limit their ability to scale. IonQ's reduced error rates make scalability a possibility. Consequently, the company aims to construct a quantum computing network, reminiscent of the infrastructure that underpins today's world wide web. It pursued several acquisitions to achieve its goal of building "the next generation of the internet," in the words of IonQ Chairman Peter Chapman. But like Rigetti, IonQ's costs are rising. It posted a Q1 operating loss of $75.7 million, an increase from 2024's $52.9 million, on revenue of $7.6 million. So it, too, is pursuing an equity offering to the tune of $1 billion. In addition, IonQ believes it can hit revenue of $75 million to $95 million in 2025. This would be a strong increase over 2024, when sales soared 95% year over year to $43.1 million. Making the choice between IonQ and Rigetti Computing stock Although Rigetti's superconducting qubits technology is well established in the quantum computing industry, IonQ's approach is producing higher sales. On top of that, another factor to consider is share price valuation. This can be assessed using the price-to-sales (P/S) ratio, a metric commonly used when companies are not profitable. The chart reveals Rigetti's P/S multiple has skyrocketed from where it was a year ago, and is far higher than IonQ's as well. This suggests Rigetti stock is overpriced, making IonQ the better value. That said, IonQ stock is not cheap, given it has a P/S ratio exceeding 200. While quantum computers hold the promise of revolutionizing the computing industry, whether IonQ or Rigetti's approach will win out in the end is far from certain. After all, quantum computing is still in its infancy. Its market size was just $4 billion in 2024, although industry estimates predict rapid growth to $72 billion by 2035. As of now, IonQ's 2024 sales success coupled with an outlook of 2025 revenue growth, and a far better valuation compared to Rigetti, make its stock the superior quantum computing investment between these two businesses. Ideally, wait for a dip in IonQ's share price, and for its Q2 results to validate it's on a trajectory to hit 2025 sales targets before deciding to pick up shares. Should you buy stock in IonQ right now? Before you buy stock in IonQ, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and IonQ wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Robert Izquierdo has positions in IonQ. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Better Quantum Computing Stock: IonQ vs. Rigetti Computing was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Prediction: This Unstoppable Artificial Intelligence (AI) Stock Will Join Nvidia, Microsoft, Apple, Amazon, and Alphabet in the $2 Trillion Club by Year's End
Prediction: This Unstoppable Artificial Intelligence (AI) Stock Will Join Nvidia, Microsoft, Apple, Amazon, and Alphabet in the $2 Trillion Club by Year's End

Yahoo

time11 minutes ago

  • Yahoo

Prediction: This Unstoppable Artificial Intelligence (AI) Stock Will Join Nvidia, Microsoft, Apple, Amazon, and Alphabet in the $2 Trillion Club by Year's End

Key Points The $2 trillion club is full of businesses benefitting from the growing demand for artificial intelligence. The company I'm eyeing is developing its own AI capabilities that serve multiple cases across its business with huge revenue opportunities. The stock trades for a fair value, and even slight outperformance could push it into $2 trillion territory. 10 stocks we like better than Meta Platforms › Nvidia recently became the first ever $4 trillion company in the world. Its rapid ascension in value stems from growing demand for artificial intelligence. But Nvidia isn't the only company that's seen its market value soar to multitrillion-dollar levels on the back of AI-fueled growth. The three biggest cloud computing providers -- Amazon, Microsoft, and Alphabet -- all boast market caps above $2 trillion. Meanwhile, Apple remains one of the most valuable companies in the world as it works to catch up on its AI capabilities. But the $2 trillion club may be about to get a little bigger. One company is showing strong financial results stemming from the rapid advancements of artificial intelligence over the last few years. In fact, I predict it will surpass the $2 trillion market cap milestone before the end of the year. Here's the AI giant that could join the $2 trillion club. One of the biggest beneficiaries of generative AI capabilities I predict that the next member of the $2 trillion club will be Meta Platforms (NASDAQ: META). Not only does it already have a market cap of roughly $1.8 trillion as of this writing on July 24 -- which puts it about 11% from $2 trillion -- but the stock currently looks undervalued relative to the potential opportunities. AI could boost its revenue in the near term while opening up even bigger opportunities in the long run. During Meta's first-quarter earnings call on April 30, CEO Mark Zuckerberg laid out five major opportunities for the company with AI. Improved advertising: Meta has long used machine learning algorithms to help surface advertisements amid organic content to drive maximum engagement. That's led to steady improvements in ad pricing for the company. It's also rolled out generative AI tools that help marketers come up with creatives (ads). In the pipeline, Meta's developing an AI agent that can take a marketer's objective and budget and create and run the entire campaign for them. That has the potential to save marketers money and increase the total number of companies running ads on Meta's properties, further pushing ad prices higher. More engaging experiences: Zuckerberg details two benefits of AI: better recommendations and new types of content. Meta has expanded its AI model to include more data points across all different types of content to improve recommendations across every surface of its apps, including Facebook, Instagram, and WhatsApp. As it grows the model bigger and bigger, it's getting better and better at engaging users. That's only possible because it now has the compute power to support its large language model development. Zuckerberg also expects generative AI tools to provide new ways for creators to produce better content for users. Everything from existing content like photos and videos can be manipulated with AI, and generative AI could enable creators to produce more interactive content as well. Business messaging: Meta's WhatsApp for Business is a relatively small source of income right now. But as Meta improves its AI agent capabilities, it reduces the cost for businesses to provide customer service and sales through WhatsApp and Messenger. That could lead to a surge in WhatsApp for Business users. One analyst thinks AI agents alone are a $100 billion opportunity for Meta. A stand-alone AI chatbot: Meta has integrated the Meta AI assistant into all of its main apps and released a stand-alone version of the app as well. As the user base grows, it could provide another source of valuable advertising inventory. Importantly, since Meta is developing its own large language model for the above applications already, the additional cost of building and running a stand-alone AI chatbot is far lower than for dedicated AI companies like OpenAI or Anthropic. Devices: Zuckerberg points out the growing popularity of Meta's AI glasses. Unit sales tripled in the first quarter. Longer term, generative AI may be essential for creating an augmented reality user interface that fits into the unique setting of each user. Indeed, AI has the potential to dramatically impact Meta's financials in a positive direction in the near term while supporting its long-term objectives in virtual and augmented reality. The stock looks like a bargain right now The above factors should be able to generate strong double-digit revenue growth for Meta for years to come. The company saw 16% revenue growth last quarter, while exhibiting nice operating leverage. As a result, operating income climbed 27% year over year. The big step up in capital expenditures could weigh on earnings growth for the next couple of years as depreciation expense climbs as a result. But as the company grows into those expenses, it should continue to show operating leverage. Meta's also using excess cash flow to repurchase shares. It bought back $13.4 billion worth of its stock in the first quarter, and it still has $70 billion in cash on the balance sheet. As a result, the company should be able to generate strong earnings-per-share growth. As of this writing, the stock trades for 28 times earnings. Considering the growth potential ahead for the stock, that's an enticing price for investors. To push the stock to $2 trillion, it would have to trade for closer to 31 times earnings, which isn't an unreasonable multiple for the stock. But if Meta ends up outperforming expectations, it could trade for the same multiple and still achieve a $2 trillion valuation. I expect a combination of multiple expansion and outperformance to drive the stock to $2 trillion before the end of the year. Should you buy stock in Meta Platforms right now? Before you buy stock in Meta Platforms, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Meta Platforms wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Adam Levy has positions in Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Prediction: This Unstoppable Artificial Intelligence (AI) Stock Will Join Nvidia, Microsoft, Apple, Amazon, and Alphabet in the $2 Trillion Club by Year's End was originally published by The Motley Fool Sign in to access your portfolio

Irish premier welcomes trade deal between EU and US
Irish premier welcomes trade deal between EU and US

Yahoo

time11 minutes ago

  • Yahoo

Irish premier welcomes trade deal between EU and US

The Irish premier has welcomed a deal between the European Union and the United States, which will see a 15% tariff on most EU imports to the US. The deal was reached during a meeting between Donald Trump and the president of the European Commission on Sunday. The US president met European Commission president Ursula von der Leyen to hammer out the final details on the trading relationship between Europe and the US. Reacting to the deal, Taoiseach Micheal Martin said the agreement was very welcome. 'It brings clarity and predictability to the trading relationship between the EU and the US – the biggest in the world,' the Fianna Fail leader said. 'That is good for businesses, investors and consumers. It will help protect many jobs in Ireland. 'The negotiations to get us to this point have been long and complex, and I would like to thank both teams for their patient work. 'We will now study the detail of what has been agreed, including its implications for businesses exporting from Ireland to the US, and for different sectors operating here. 'The agreement is a framework and there will be more detail to be fleshed out in the weeks and months ahead.' Mr Martin said the higher tariffs will have an impact on trade between the EU and the US, which will make it more expensive and more challenging. 'However, it also creates a new era of stability that can hopefully contribute to a growing and deepening relationship between the EU and the US, which is important not just for the EU and the US, but for the global economy,' he added. 'Given the very real risk that existed for escalation and for the imposition of punitively high tariffs, this news will be welcomed by many.' The deal was also welcomed by deputy Irish premier and Minister for Foreign Affairs and Trade Simon Harris, who said it brings clarity to businesses. 'While we have yet to see the detail, I welcome that an agreement has been announced by Commission President von der Leyen and US President Trump,' Mr Harris said in a statement. 'A deal provides a measure of much-needed certainty for Irish, European and American businesses who together represent the most integrated trading relationship in the world. Ireland makes a key contribution to this with the Ireland-US economic relationship valued at more than one trillion euros. 'The US had made clear, and this has been replicated in other recent agreements, which the US has reached with other countries, that a baseline tariff was always going to be part of the outcome. 'I have always stressed that tariffs are damaging and will have a negative impact on companies exporting to the US. 'While Ireland regrets that the baseline tariff of 15% is included in the agreement, it is important that we now have more certainty on the foundations for the EU-US trade relationship, which is essential for jobs, growth and investment. 'President von der Leyen described this as 15% tariffs across the board, all-inclusive.' He said further detail is needed around pharma, aviation and other sectors. Mr Harris said he will examine the details of the agreement over the coming days to establish the effect on Irish businesses and the economy. Earlier, EU commissioner Michael McGrath said the meeting was a 'significant and decisive moment'. Mr McGrath, EU Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, said it would involve substantive negotiations between both sides. 'It's a significant moment, we hope a decisive moment, and it builds on an enormous amount of work that has been done over quite a period of time,' Mr McGrath said ahead of the meeting. 'President Trump invited President von der Leyen to Scotland for a meeting. 'This follows on the back of intensive negotiations over a number of months. He added: 'It is not a case of turning up and signing on the dotted line. There will be a real discussion that will happen, and it will take on a dynamic of its own, and let's see what happens over the course of the afternoon. 'But from the EU's point of view, we are determined to do all that we can to get a deal for European businesses, because we recognise the cost of uncertainty. 'It manifests in trade and in investment decisions and ultimately in employment and of course tariffs can cost consumers at the end of the day. 'We want a good deal. We have negotiated hard, and we're at a point now where hopefully the two leaders can today bring it to a concluding phase.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store