Development of a Real-Time P2P Instant Payment Solution with FedNow® and RTP® Network Integration

Financial services

Identifying the Need for a Fast, Secure, and Industry-Compliant Instant Payment System

The client operates a traditional ACH-based payment app supporting next-day bank transfers. They face market pressure to enhance user experience by enabling real-time, peer-to-peer transfers without third-party intermediaries. The challenge involves adopting new industry standards, ensuring security, and redesigning existing API infrastructure to facilitate seamless and instant transactions, thus maintaining competitiveness in the evolving digital payments landscape.

About the Client

A mid-sized digital banking or payment application provider aiming to upgrade its existing ACH transfer service to include instant, peer-to-peer payment capabilities.

Goals for Implementing a Realtime Instant Payment Infrastructure

Replace traditional ACH transactions with real-time peer-to-peer (P2P) instant payments
Achieve first-mover advantage by integrating with FedNow® and RTP® network, ensuring next-generation payment processing
Develop an automated development pipeline to streamline code builds, testing, and deployment within approximately five minutes
Enhance user experience with a secure, reliable, and fast payment process
Expand market share and attract new users and investors through advanced payment functionalities

Core Functional Specifications for the Instant Payment Solution

API integration with FedNow® and RTP® network for instant transaction processing
Seamless integration with existing payment app infrastructure to support upgraded real-time transfers
Design of administrative and user-facing interfaces to manage and execute instant payments
Implementation of testing scripts to identify and resolve inconsistencies across API environments
Development of an automated build, test, and deployment pipeline for rapid updates and releases
Security features to safeguard funds and protect transaction data within the instant payment flow

Preferred Technologies and Architectural Approaches

API-driven architecture for seamless integration with external networks

Automated CI/CD pipelines for rapid deployment and updates

Secure API protocols compliant with banking industry standards

Real-time collaboration tools for stakeholder engagement during development

Essential External System Integrations

FedNow® API for federal reserve instant payment processing
RTP® network API for real-time settlement
Internal authentication and security modules
Testing and monitoring tools to ensure API consistency and security

Key Non-Functional System Requirements

High scalability to handle increasing transaction volumes without degradation
Low latency to ensure transactions are completed in real-time, with minimal delays
Robust security measures including encryption and fraud detection
System reliability with 99.9% uptime and rapid incident response

Projected Business Benefits of Implementing the Instant Payment System

The new instant payment solution is expected to enable real-time peer-to-peer transfers, significantly improving user experience. The system aims to support secure, compliant transactions integrated with FedNow® and RTP® networks, positioning the client as an early market leader. It will facilitate faster transaction processing, reduce transaction times from 1-2 days to immediate, and attract new customers and investors, ultimately increasing market share and competitiveness in the digital payments arena.