The Clearing House and the Bank of New York Mellon (BNY) have completed the largest instant payment in US history, at $10 million, making it the first payment on the RTP network to exceed $1 million.
The RTP network’s transaction limit increased from $1 million to $10 million yesterday (9 February), thereby enabling businesses to send larger payments instantly and providing an alternative to traditional wire transfers and checks.
The $10 million inter-company liquidity management payment was made from global transfer agent Computershare to an account at another financial institution.
Currently, more than 285,000 businesses rely on the RTP network each month to send and receive payments.
“This achievement represents a major step forward in modernizing 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 supporting their long-term financial success.”
According to BNY, for corporate customers, real-time higher-value payments are “critical” in 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.
Ann Bowering, chief executive officer of Computershare Issuer Services, North America, said: “In our industry, the ability to move large payments instantly, securely, and reliably is crucial.
“With real-time payments, we can settle higher-value transactions immediately, reducing counterparty risk and improving overall working capital efficiency.”
She added: “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.”
David Watson, president and chief executive officer of The Clearing House, called the ability to send higher-value transactions over the RTP network “a valuable payment option” for corporate customers.
“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,” Watson said.
“The increased transaction limit is just one example, and we’ll continue to evolve as the RTP network continues to grow.”
Further reading: BNY Mellon study reveals global businesses’ appetite for real-time payments
