Instant FedNow® Interoperability with RTP® Real-Time Payments Using ISO 20022 Messaging for B2B, C2B, and A2A Transactions

1) Instant FedNow® & RTP®: How They Work Together

Both FedNow® (Federal Reserve) and RTP® (The Clearing House) offer real-time payment capabilities, but they operate on different infrastructures. While RTP® has been in use since 2017, FedNow® expands real-time payment accessibility to more financial institutions, including smaller banks and credit unions.

Key Similarities Between FedNow® & RTP®:

✅ Both enable real-time, 24/7/365 transactions—no banking hours or batch delays.
✅ Both use ISO 20022 Request for Payment (RfP) messaging for digital invoicing & payment requests.
✅ Both support instant settlement for B2B, C2B, and A2A transactions.
✅ Both provide fraud-resistant, secure payment channels for businesses and consumers.

How They Interoperate Using ISO 20022 RfP Messaging

ISO 20022 Request for Payment (RfP) standardizes how businesses send invoices and request payments across FedNow® and RTP® networks. This allows:
���� B2B: Businesses can send structured invoice requests, receive payments instantly, and reconcile transactions automatically.
���� C2B: Merchants can offer real-time checkout with instant payments—no credit card fees or chargebacks.
���� A2A: Consumers and businesses can move funds instantly across accounts without ACH processing delays.

By aligning payment messaging across both networks, financial institutions can process FedNow® and RTP® transactions seamlessly, reducing fragmentation in the payment industry.

2) Benefits of ISO 20022 RfP in FedNow® & RTP® Transactions

The use of ISO 20022 Request for Payment (RfP) messaging across both FedNow® and RTP® enables:

✅ Faster, Automated Payments for B2B Transactions

·        Businesses can issue invoices digitally with instant payment request links.

·        Customers pay directly from their bank accounts, avoiding ACH or credit card fees.

·        Payments settle instantly, improving cash flow and eliminating late payments.

✅ Seamless Checkout for C2B Payments

·        Retailers and e-commerce businesses can offer real-time payment options at checkout.

·        Customers pay using their bank accounts, bypassing credit card processing fees.

·        Funds settle immediately, improving merchant liquidity and transaction security.

✅ Instant Fund Transfers for A2A Transactions

·        Individuals can transfer money between personal or business accounts instantly.

·        No waiting for ACH transfers or wire processing delays.

·        Ideal for gig workers, payroll payments, and emergency fund transfers.

Using ISO 20022 RfP messaging, businesses and individuals gain greater control over their payments, reducing delays and unnecessary fees.

3) Comparing FedNow® vs. RTP®: Key Differences in Real-Time Payments

Feature	Instant FedNow®	RTP® (Real-Time Payments)
Operated By	Federal Reserve	The Clearing House
Availability	24/7/365	24/7/365
Settlement Speed	Instant	Instant
ISO 20022 RfP Support	✅ Yes	✅ Yes
Primary Users	Banks of all sizes, credit unions	Larger banks & financial institutions
Transaction Limits	$1M per transaction	$10M per transaction
Chargebacks/Reversals	Irrevocable transactions	Irrevocable transactions
B2B, C2B, A2A Compatibility	✅ Yes	✅ Yes

Key Takeaways:

✔ FedNow® expands real-time payment access to more financial institutions, including community banks.
✔ RTP® supports higher transaction limits, making it ideal for large corporate payments.
✔ Both networks are interoperable through ISO 20022 messaging, ensuring smooth transactions across businesses and consumers.

By utilizing FedNow® and RTP® together, financial institutions can provide wider real-time payment options for businesses and individuals.

4) How Businesses Can Use FedNow® & RTP® Together for Seamless Payments

���� Business-to-Business (B2B) Transactions

✔ Automate invoice payments with ISO 20022 RfP messaging.
✔ Reduce reliance on ACH transfers and wire fees.
✔ Improve vendor and supplier cash flow with instant settlement.

���� Consumer-to-Business (C2B) Payments

✔ Enable real-time checkout in e-commerce and retail.
✔ Reduce credit card processing fees by accepting direct FedNow® or RTP® payments.
✔ Lower fraud risks by eliminating chargebacks.

���� Account-to-Account (A2A) Transfers

✔ Transfer money instantly between personal or business accounts.
✔ Provide instant payroll processing for employees and gig workers.
✔ Eliminate ACH transfer delays for fund transfers between banks.

With ISO 20022 messaging, businesses and consumers can benefit from a unified real-time payment experience across both networks.

5) The Future of Instant Payments with FedNow® & RTP®

As FedNow® expands accessibility and RTP® continues to serve larger banks, interoperability between these networks will reshape how businesses and consumers transact. The adoption of ISO 20022 Request for Payment messaging will drive:

✅ Faster invoice payments & real-time cash flow management.
✅ Seamless financial integration for banks and fintech companies.
✅ Lower transaction costs by eliminating third-party processors.
✅ A standardized payment ecosystem supporting all types of transactions.

Businesses and financial institutions should adopt FedNow® and RTP® together to maximize their real-time payment capabilities and future-proof their payment processing systems.

���� Integrate Instant FedNow® and RTP® today and unlock the power of real-time financial transactions!

Final Thoughts: Why Businesses Should Leverage FedNow® & RTP® for Real-Time Payments

���� Whether you’re a business handling B2B transactions, an e-commerce platform managing C2B payments, or an individual making A2A transfers, adopting FedNow® and RTP® with ISO 20022 Request for Payment messaging will help you move money faster, securely, and more efficiently.

���� Start using Instant FedNow® and RTP® today—because real-time payments are the future of finance!