June 3, 2025
Written by: Merchant Connect UK
In the third and final installment of our real-time payments series, we explore the future of instant transactions and tackle the most important questions: Will real-time payments finally take off in the US and UK? And can they become a truly global solution?
Real-time payments (RTPs) allow money to move between accounts instantly, 24/7/365. They offer immediate settlement, improved cash flow, and better transparency—an ideal solution in today’s fast-paced digital economy.
While countries like India, Singapore, and Brazil have seen rapid adoption of RTPs, uptake in the UK and especially the US has been slower. So, what’s holding things back—and what’s next?
The U.S. is gradually embracing real-time payments with systems like The Clearing House’s RTP Network and FedNow. However, legacy banking systems, regulatory complexities, and fragmented financial infrastructure have delayed mass adoption.
Challenges:
Many banks still rely on outdated batch processing.
Lack of universal interoperability.
High costs and complexity of integration for smaller institutions.
Outlook:
With FedNow officially launched and major banks beginning to participate, 2025–2027 could mark a turning point. As consumer demand for instant transfers grows, adoption will become more widespread, especially for P2P payments, gig economy payouts, and B2B transactions.
The UK’s Faster Payments Service (FPS) has existed since 2008, but usage has been largely limited to person-to-person or small-business transfers. RTP isn’t yet the default for most consumer or retail transactions.
Barriers:
Card payments remain dominant for online retail.
Real-time rails are often seen as costly or complex to implement at scale.
Lack of merchant-facing education on RTP benefits.
Opportunities:
Open Banking is paving the way for more real-time payment innovation.
Integration with mobile apps and QR code tech is improving accessibility.
Merchant adoption is growing, particularly in travel, gaming, and digital commerce.
Outlook:
The UK has the infrastructure—it now needs a push in merchant adoption and public awareness. Expect increased use of real-time payments by fintechs, marketplaces, and iGaming platforms over the next 2–3 years.
This is the big question. Currently, real-time payment networks are largely regional and often don’t “talk” to one another. A truly global RTP system would require:
Cross-border interoperability between national systems (e.g., UK’s FPS and EU’s SEPA Instant).
Standardized compliance across jurisdictions.
Harmonized regulation of AML, KYC, and consumer protection laws.
Signs of Progress:
Global banks are investing in RTP compatibility.
The G20 has made cross-border payments a key initiative.
ISO 20022 standards are slowly aligning financial messaging systems.
Outlook:
A seamless global RTP network is still several years away. However, bilateral agreements (e.g., UK–EU, US–Mexico) and blockchain-based stablecoin settlement may bridge the gap sooner than expected.
Real-time payments have the potential to revolutionize how businesses and consumers send money, but global adoption will require collaboration, innovation, and regulatory alignment. For now, expect rapid regional growth, with cross-border functionality improving incrementally.
At Merchant Connect, we’re helping businesses of all sizes take advantage of modern payment infrastructure—including Open Banking, real-time payouts, and global payment gateways.
Contact Merchant Connect to explore real-time payment solutions tailored to your business.