RTP Use Cases

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RTP Use Cases

Payroll processing, bills payment, and insurance bills payment are expected use cases of real-time payments (RTP) in the United States. The uses seek to leverage speed and flexibility advantages offered by the network. The requested information about the uses is provided below.

Payroll

  • Paying employees is one of the expected uses of real-time payments (RTP). RTP is a good fit in payroll processing because it helps employers to instantly pay their workers.
  • Ensuring that employees get their payments within a matter of seconds is crucial, especially because most people are facing hard times in the wake of the COVID-19 pandemic.
  • RTP is also a good fit because it offers vital flexibility of allowing employees to adjust their payroll as a result of emergency or time-sensitive situations.
  • A real-world use case is Paychex, Inc.’s adoption of RTP. The company is among the first HR solutions providers to allow business owners to use RTP. According to the company’s president, Martin Mucci, the ability to pay employees their earned money as fast as possible is particularly important given the distinct circumstances facing many businesses.

Paying Bills

  • Another use case is utility bills payment. RTP has demonstrated its ability to assist customers pay for their utility bills in a streamlined manner that is convenient to both the provider and the client.
  • RTP is a good fit because it provides the request for payment (RFP) messaging that captures important transaction details such as due dates, invoice details, and other relevant information.
  • RTP also helps the billing companies to eliminate operational challenges such as last-minute customer transfers and uncashed refunds. Other challenges such as missing email addresses and phone numbers that create tokenization barrier are also addressed through RTP.
  • BNY Mellon is a perfect real-world use case of RTP bills payments. The company was the first bank to provide the request for payment messaging platform on RTP.
  • The real-time messaging focuses on aspects such as e-bills, e-bills, and payment requests. The message receiver may reject or approve the transfer of payment. Once approved, the payment is instant, final, and irreversible.

Paying Insurance Claims

  • Settling insurance claims is the other expected use case of RTP. In the event of a disaster, customers are eager to know that their claims will be paid promptly. Besides being a competitive differentiator, use of RTP in handling insurance claims posits numerous operational advantages.
  • RTP is a good fit because it facilitates fast payment of claims to help customers get their life back on track. Unlike paying claims using paper checks that often cause procedural delays, RTP facilitates instant sending and receiving of funds anytime of the day.
  • For instance, an insurer can transfer a claim payment for a disaster relief anytime to the customer when they need it most without technical restrictions such as weekends or other non-working days.
  • Moreover, RTP is a good fit because it offers greater transparency and improved security in the whole claim payment process.
  • BNY Mellon bank offers a product that signifies a real-world evidence to support RTP use. According to BNY Mellon, Banks in North America, including the United States, are exhibiting increased interest in immediate payment as they seek to eliminate paper dependency, propagate transparent and immediate user experience, and reduce expenses. The bank is encouraging insurance customers to leverage its RTP RFP message solution.
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