After helping many financial institutions connect to instant payment networks, we've learned some important lessons. The most successful implementations create sustainable revenue opportunities for financial institutions.
A community bank in the Midwest implemented both RTP and FedNow last year. They didn't do it because they had to. They did it because they saw opportunity. From the start, their mindset was strategic. Instant payments weren't just a technical upgrade. They were a business growth initiative.
They aligned their payments modernization with customer engagement goals. They launched a targeted rollout focused on small business clients and high-value consumer segments. Within six months, they saw a 22% increase in digital payment adoption. They also saw a 15% rise in commercial account retention. There were measurable improvements in operational efficiency as ACH and check volumes declined.
Just as importantly, they gained something less visible but equally valuable. They built stronger relationships. Business customers who once waited days for funds began receiving payments in seconds.This improved cash flow and loyalty. Internally, teams that once viewed instant payments as "one more project" began seeing them as a platform for innovation.
This community bank didn't just implement instant payments. They turned them into a strategic advantage. This is proof that with the right approach, even smaller institutions can lead the way in shaping the future of payments.
What We've Learned from Real Implementations
As one of the early certified FedNow service providers, our team learned first-hand what works. The institutions that think strategically about value creation rather than just technology implementation are thriving.
The most successful institutions follow a clear pattern.They start with account holder needs, not payment features, and their customers' pain points. From a retailer struggling with weekend cash flow gaps to a healthcare provider waiting weeks for insurance reimbursements, when when solve real problems, profitable service options naturally follow.
Dual network participation has become a significant differentiator. When an institution connects to both RTP and FedNow, it provides comprehensive access to the entire U.S. banking ecosystem, creating multiple touch points for revenue generation.
Four Key Revenue Streams
Based on our work with financial institutions of all sizes, we see four revenue streams emerging.
1. Enhanced Treasury Services: “Just in time” payments have changed how businesses manage cash flow. Commercial clients can now pay suppliers instantly, optimize working capital in real time, and manage liquidity with unprecedented precision. This creates natural opportunities for treasury services that command higher fees than traditional offerings.
2. API Integration and Partnership Revenue: When instant payments become invisible through developer friendly APIs, institutions create multiple revenue streams. Charging usage-based fees for system integrations, developing revenue sharing partnerships with software vendors, and offering white label services for fintech partners are all options regardless of institution size.
3. Request for Payment Services: RFP functionality transforms one-time transactions into recurring revenue opportunities. Instead of simply processing payments, institutions manage entire billing relationships with automated reconciliation, detailed reporting, and industry specific customizations.
4. Tiered Service Models: Volume based pricing and service level agreements create revenue that grows with accountholders. Basic services drive adoption while premium features, guaranteed processing times, and enhanced support justify higher fees.
How to Get Started on Pricing Models
Assess your current customer segments and their instant payment needs. Which customers have business processes that could benefit from real time settlement? What problems are they solving with work arounds that instant payments could address more elegantly?
Identify which revenue streams align with your strategic priorities. If you have strong treasury services, enhanced liquidity management might be a natural starting point. If you have robust technology teams, API integration services might offer the biggest opportunity.
Plan pricing models that can evolve with market adoption. Start with transaction-based fees while building toward value-based pricing as customers realize business benefits and your capabilities mature.The institutions that establish thoughtful pricing strategies now will be best positioned to lead the instant payments market. Rather than viewing instant payments as a necessary expense, consider them as the foundation for new revenue opportunities.
The technology exists, the networks are operational, andcustomer demand is accelerating. The next 18 months will define whichinstitutions become instant payment leaders and which remain followers.
