Real-time Payments Limit Increase Sets Stage for Cost Reductions

real-time payments limit increases

While real-time payments have the potential to revolutionize payments and settlement processes for treasury functions, limits on the size of transactions have kept some organizations from embracing the payment method. However, a recent change to The Clearing House’s RTP® network may change all of that. 

As of April 18, 2022, The Clearing House’s RTP® network raised transaction limits on the network from $100,000 to $1 million per transaction. These larger transactions still allow for transparent, fast payments for all involved.  

What the RTP Increase Means for Kyriba Customers   

With RTP®, clients can send urgent payments directly from Kyriba, see payment statuses and receive updates within seconds. This increase allows customers to use Kyriba as a one-stop shop, and alleviates the need for them to log directly into their bank portals.  

Clients can expect cost reductions as they can end up canceling their bank portal tokens and using Kyriba for all or most of their real-time payments and reporting.  “The increase from $100,000 to $1 million for RTP® limit increases client confidence in using Kyriba for all their payment needs,” noted Elire payments expert, Abdel Saafan. “On top of that, Kyriba’s robust approval workflow and fraud module can be configured for all payments, including real-time payments.”  

While the potential efficiencies gained from RTP are obvious, there is adoption hesitation related to fraud for these instantaneously cleared payments and the ability for clawbacks for fraudulent payments. The increased limits mean an increase in accuracy for finance teams, causing them to double and triple-check instant payments to mitigate CFO risk exposure. 

Expanding Use Cases for Corporates 

While corporate use of real-time payments has so far been predominantly relegated to B2C and C2B transactions, this emerging payment method can also address pain points in B2B payments. 

From a cash management standpoint, real-time payments are especially beneficial for treasury and finance. Clearing payments instantly reduces settlement risk and provides a clear liquidity picture. It also allows incoming payments to be immediately converted into accessible cash. 

Real-time offers the opportunity to “un-batch” payments for corporates. Rather than relying on batch payments that are locked in at key times each day, real-time payments can be sent at any time. 

Real-time payments can also keep companies from missing out on early payment discounts. Where discounts are available, real-time allows a business to ensure that payments are made on the last day of discount availability. 

Technology can help shoulder the finance burden by leveraging digitization, artificial intelligence (AI), application programming interfaces (APIs), and visualization for payment matching, outlier and exception identification, and rule and limit setting.  

Learn More  

To learn more on how you can leverage real-time payments for your organization, or how to utilize your TMS for RTP®, visit Kyriba Payments Solutions. Elire and Kyriba partner to deliver payments transformation processes and solutions for our clients. Learn more about Elire’s Treasury Services and Kyriba Partnership here.

  • Abdel Saafan

    Abdel Saafan

    Abdel Saafan serves as Elire’s SaaS Treasury Practice Lead. Mr. Saafan leverages his expertise in Payments, Risk, and data analysis to lead Elire’s team of SaaS Treasury consultants in treasury software implementations. Abdel works to ensure that clients are fully optimizing their TMS solutions, and seeing the benefits and ROI of undergoing treasury transformations.

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