The payments system provider, The Clearing House, extended its transaction limit for funds transferred on the Real-Time Payments (RTP) Network from $1million to $10million. Within just a couple of days of this announcement, The Bank of New York Mellon Corporation (BNY) completed the largest transaction to date on the network, marking a new era for instant, high-value payments in the US.
On 9 February, the RTP network’s transaction limit increased from $1million to $10million, enabling businesses to send larger payments instantly, 24/7. Capitalising on this, BNY completed a $10million transaction on behalf of the global transfer agent, Computershare, to an account at Bank of America. The payment, which was for inter-company liquidity management, marks a significant milestone as US firms can now move money faster, optimise cash flow, and streamline financial operations.
This payment from Computershare also highlights the growing demand for higher-value instant payments, providing an alternative to traditional wire transfers and checks while improving liquidity management. Currently, over 285,000 businesses rely on the RTP network each month to send and receive payments.
“This achievement represents a major step forward in modernising high-value payments for our clients,” said Jennifer Barker, global head of treasury services and depositary receipts at BNY. “By leveraging the expanded transaction limits on the RTP network and BNY’s position at the forefront of capital markets, we are empowering our clients to operate with greater agility and support their long-term financial success.
“It’s another example of how BNY is enhancing payment solutions to meet evolving business needs with speed, transparency, and efficiency.”
Value of real-time higher-value payments
For corporate customers, real-time higher-value payments are critical for managing large supplier transactions moving wealth management or brokerage funds between accounts, funding payrolls, responding to unplanned liquidity needs, and ensuring the immediate settlement of obligations. The RTP network provides businesses with 24/7 availability, immediate funds availability, and enhanced payment transparency – offering tools that are crucial for navigating the complex financial landscape.
“In our industry, the ability to move large payments instantly, securely and reliably is crucial,” said Ann Bowering, CEO of Computershare issuer services, North America. “With real-time payments, we can settle higher-value transactions immediately, reducing counterparty risk and improving overall working capital efficiency. This level of speed and certainty was not possible before, and this is an exciting step forward for how we can potentially deliver solutions to our corporate clients.”
“The ability to send higher-value transactions over the RTP network is a valuable payment option for corporate customers,” said David Watson, president and CEO of The Clearing House. “After trailblazing the path for instant payments in the United States with the RTP network’s launch more than seven years ago, we continue to adapt to meet industry demands. The increased transaction limit is just one example, and we’ll continue to evolve as the RTP network continues to grow.”
