Information is transmitted in real time. So why is it that business payments are subject to standard operating hours, processing windows and cut-off times? Until now, business payments have lagged behind the speed at which businesses operate.
Routable offers Real-Time Payments (RTP) to allow businesses to send instant payments at scale to creators, gig workers, and sellers. With RTP, funds are remitted directly to a recipient’s bank account, available for use within seconds. The best part of it all? By delivering immediate payments for goods and services, businesses are able to expand their partner networks and improve payee retention to scale their business.
In this blog post, we’ll cover the advantages of using RTP and how you can get started.
TLDR:
- Real-Time Payments (RTP) allow businesses to send instant, 24/7/365 payouts directly to recipient bank accounts in seconds.
- Key advantages include immediate funds availability, rich remittance data for simpler reconciliation, and better cash flow visibility.
- Routable supports high-volume RTP operations through a reliable REST API and straightforward CSV uploads.
- Instant payouts are ideal for gig economy workers, real estate, creator marketplaces, and insurance claims needing rapid disbursements.
What Is RTP?
Real-time payments are payments that occur instantly, directly to a recipient’s bank account. Businesses and individuals can send and receive payments 24/7, and funds are immediately available for use by the recipient.
An RTP is completed through the RTP® network, which is monitored by a banking association and payments company called The Clearing House (TCH). Any federally insured depository can join the RTP® network without a membership to TCH. Since its launch in 2017, the RTP network has expanded to reach over 71% of U.S. demand deposit accounts, including most major banks, with adoption increasing each day. Combined with Routable’s FedNow support, Routable’s Instant Payments offering can reach more than 85% of U.S. bank accounts.
The RTP network has experienced substantial growth since launch. According to The Clearing House, the network processed $481 billion in value during the second quarter of 2025 alone and regularly sets new single-day transaction records. This broad coverage means the majority of businesses and consumers are already equipped to transact instantly. The Clearing House projects continued adoption acceleration as regional and community banks recognize instant payment capabilities as table stakes for competitive parity. Institutions that cannot receive or send real-time payments risk losing commercial customers to competitors who can.
The Benefits of RTP
- Delivery speed. Funds are sent, received and available for use in the recipient’s bank account within seconds.
- Availability. An RTP can be processed 24/7/365, including weekends and holidays, with no cut-off times.
- Transparency. Immediate payment confirmation and rich remittance data to speed up reconciliation and keep both parties aware of payment status.
- Improved control of cash flow. RTP transfers are cleared and settled within seconds, providing increased cash flow visibility for you and your payees.
- Partner satisfaction. Creators, gig workers, and sellers will appreciate the speed at which funds arrive in their accounts.
- Enhanced security features. RTP transactions are encrypted end-to-end and monitored in real time by The Clearing House network infrastructure. Network-level validation confirms account eligibility before funds move, verifying the receiving account is open and able to accept payments. Because RTP is irrevocable, payments cannot be reversed due to traditional chargebacks. However, this irrevocability increases push payment fraud risk, making rigorous upfront payee verification critical.
- Compliance and screening. Your payee compliance obligations remain even when payments clear in seconds. Routable adds a built-in compliance layer for mass payouts, performing TIN validation, sanctions screening, and checks against 6,000+ watchlists before an instant transfer is ever initiated.
How Routable Processes Real-Time Payments
For finance and engineering teams managing high-volume payout programs, Routable builds instant payment capabilities directly into your existing infrastructure. The process reduces manual intervention while maximizing payment reliability:
- Programmatic initiation. Trigger instant payouts via API or batch CSV uploads, integrating directly with your platform’s native workflows and ERP system.
- Automated routing and validation. The system automatically verifies receiving account eligibility and routes the transaction via the RTP or FedNow network based on the payee’s banking institution.
- Ledger visibility. Maintain control over your funding sources with clear visibility into account balances, confirming sufficient funds are available before mass disbursements execute.
- Rich remittance synchronization. Pass up to 140 characters of custom remittance data automatically. Adding context like invoice or purchase order numbers helps both parties simplify reconciliation and reduces manual tracking.
Once triggered, the network settles the funds in seconds, and payees receive immediate automated confirmation of their payout.
Sending RTP at Scale
Real-Time Payments go beyond one-off transactions. Routable has designed its system to support large-scale RTP operations, catering to platforms and marketplaces managing high-volume payouts.
REST API Integration
Routable offers a reliable REST API that allows businesses to smoothly integrate RTP capabilities into their existing software systems in less than three developer days. This API supports automated payment initiation, status tracking with 14 distinct webhook events, and reconciliation using idempotency keys for secure retries. Developers can easily build RTP functionality into custom workflows, making it possible to send thousands of instant payments with minimal manual intervention.
CSV Uploads
For businesses that prefer a more straightforward approach or don’t have the resources for API integration, Routable provides a CSV upload feature. This allows companies to batch process multiple RTP transactions by simply uploading a formatted spreadsheet. This option combines the speed of RTP with the familiarity of spreadsheet-based operations, making it accessible to a wide range of users.
Flexibility in Creating Payout Experiences
Whether using the API or CSV upload, Routable’s platform offers extensive customization options. Businesses can tailor the payout experience to their specific needs, including custom notifications, branded payment confirmations, and detailed reporting. This flexibility means that RTP can be adapted to various business models and customer experiences.
Comparison with Other Payment Methods
When reviewing payment rails for your platform, it helps to understand how Real-Time Payments stack up against traditional options like ACH, wire transfers, and paper checks.
Use Cases for Real-Time Payments
For finance leaders, engineering teams, and product managers, RTP solves distinct industry challenges:
- Gig Economy: Finance and product teams at platforms can offer instant payouts upon job completion, which helps support worker satisfaction. A medical transportation driver completing a shift at 11 PM receives earnings instantly via an automated payout instead of waiting 3-5 days. Offering immediate access to earnings provides a meaningful benefit that can help retain gig workers and keep your platform competitive.
- Insurance and Claims Administration: Claims administration teams can execute quick case-based distributions to resolve claims faster. A policyholder whose car was totaled receives their settlement within seconds, allowing them to secure a replacement vehicle the same day. Speed and rush payment controls turn a stressful customer experience into a competitive advantage.
- Real Estate: Property management controllers can automate security deposit returns and HOA check remittances. A tenant moving out receives their deposit refund instantly, eliminating the frustration of waiting weeks for funds to clear and reducing support inquiries. Integrating programmatic payout infrastructure via API reduces administrative overhead for property management teams.
- Creator Marketplaces: Product managers and finance ops teams can trigger programmatic mass payouts to thousands of creators simultaneously. A digital creator delivering a sponsored campaign receives their earnings instantly instead of waiting through a 30-day payment cycle. For platforms managing high-volume payouts, this speed converts disbursement infrastructure into a creator retention lever.
- Digital Events and Gaming: Platform operators can automate tournament prize disbursements and talent payouts programmatically. A tournament winner receives their prize money instantly the moment competition results finalize, eliminating manual export-and-upload workflows. This immediate access to earnings directly impacts player retention and competitive positioning.
Specific Scenarios Where RTP Excels
- Emergency payments: When time is critical, such as urgent supplies or disaster relief funds.
- Last-minute payments: Meeting payment deadlines without delay penalties.
- Weekend or holiday transactions: When traditional banking hours would cause delays.
- International business: While the RTP and FedNow networks are limited to U.S. banks, platforms often need to disburse funds globally. For cross-border needs, Routable supports international payments that parallel the speed of domestic RTP, helping you connect to global networks like SEPA Instant in Europe.
- Customer refunds: Instantly refunding customers can improve satisfaction and loyalty.
Get Started Sending Real-Time Payments
RTP is available to all Routable customers sending instant payments to U.S.-based creators, gig workers, and sellers.
Ready to speed up your payout process? Request a demo today to learn how Routable can help you send instant payments at scale.
FAQ
What are Real-Time Payments (RTP)?
Real-Time Payments are instant transfers that clear directly into a recipient’s bank account within seconds. Unlike traditional methods, they are processed 24/7/365, including weekends and holidays.
How is RTP different from ACH?
While ACH payments typically take one to three business days and are bound by traditional banking hours and cut-off times, RTP transfers settle instantly at any time of day.
Are Real-Time Payments secure?
Yes. Transactions are encrypted from end to end and monitored in real time. The network also validates the receiving account’s eligibility before moving any funds.
Do payees need a special account to receive RTP?
No special account type is needed, but the receiving bank must participate in the RTP or FedNow network. Between the two networks, Routable can reach more than 85% of U.S. bank accounts.
Can I send Real-Time Payments internationally?
At this time, the RTP and FedNow networks are limited to U.S.-based bank accounts. For cross-border needs, global payment networks like SEPA Instant handle international rapid transfers. Routable supports broad international payout coverage so your global payees receive funds as quickly as possible.
