Gain a Competitive Edge with Instant Payments

Integrate Dwolla’s payment technology to connect with the RTP® Network or the FedNow® Service and access 24/7/365 payments with real-time notifications.

The Benefits of Instant Payments

Consumer demand for instant transfers and more convenient payment options is on the rise. Buyers expect immediate gratification through seamless digital transactions. Traditional payment methods, like cards, checks and legacy ACH files, no longer meet the needs of consumers or businesses who require real-time payment processing.

Instant payments aim to bridge this gap by providing a seamless connection between digital transactions and the actual movement of funds, facilitating payment automation.

Instant payments with Dwolla clear and settle almost immediately. They dramatically improve cash flow by providing near-immediate access to funds, unlike traditional payment methods that may take days to settle. This eliminates delays, allowing businesses to use funds immediately for payroll, expenses or reinvestment.

Instant payments can also streamline operations by reducing the need for manual payment automation and reconciliation, thanks to the extensive remittance data accompanying each transaction. Their 24/7/365 availability increases convenience and flexibility for businesses.

Send Funds in Real-Time

Send payments to bank accounts via the RTP ® Network and FedNow ® Service.

Improve Payment Transparency

Instant payments include immediate, detailed remittance data with each transaction, providing far greater visibility into payments than traditional methods.

Intelligent Orchestration

Initiate an instant payment, and Dwolla’s API will use intelligent routing to automatically select the best instant payment rail (RTP or FedNow) based on the recipient's bank.

Instant Payments Explained

Instant payments are a type of pay by bank transaction that is processed and settled in real-time or near-instantaneously, revolutionizing the speed at which businesses can operate. In the United States, two primary systems facilitate instant transfers: the FedNow Service and the Real-Time Payments (RTP) network.

The RTP network, launched by The Clearing House in November 2017, has grown significantly. In fact, the RTP network’s real-time payment processing is available to financial institutions that hold close to 90% of U.S. demand deposit accounts. Launched by the Federal Reserve in July 2023, the FedNow Service provides an alternative instant payment system for U.S. financial institutions. It has also seen incredible growth since its launch, recently surpassing 1,000 financial institutions participating in FedNow.

The adoption of instant transfers in the United States is rapidly increasing. According to a U.S. Bank study, over 40% of companies exceeding $100 million in revenue already use the RTP network to conduct instant transactions. The study also revealed nearly 70% of businesses anticipate adopting instant payments through RTP or FedNow within the next two years.

How Instant Payments Work

Instant payments are a payment method that allow for near-instantaneous transfer processing via the RTP network and FedNow Service. Dwolla’s intelligent orchestration automatically selects the best instant payment rail based on the recipient's bank.

Key Points to Note for Instant Transfers:

• Available for credit transfers only
• Export deadline: None
• Transfer processing time: Funds available within minutes
• Processed 24/7/365 (business days, weekends and banking holidays)
• Learn more about Dwolla's transfer timelines in our developer documentation.

Instant Payouts for the Gig Economy

• Independent driver-contractors need fast access to capital to grow their business and meet the everyday challenges presented to them: car repairs, rising gas prices, tollway fees, new technology and more.
• They needed an API with clear documentation that they could integrate quickly and support their various funds flows.
• They were able to integrate with Dwolla’s single API in less than 20 days.
• After partnering with Dwolla and adding RTP, this Fintech saw a 75% year-over-year increase in transaction volume, an 80% YOY increase in users created and a 24% YOY increase in active users.

Real-Time Payment Processing for Fintechs

• This Fintech launched their application with the objective to help their users access credit in a more equitable way.

Because of the ongoing competition with credit cards, where funds are available right away, they understood the need to shorten the transaction timeline to remain competitive.

• Since implementing Real-Time Payments with Dwolla, they have seen a 1,440% increase in transactions and a 46% increase in active users.

Instant Payments in Action

BasicBlock Gets Drivers Paid in Real Time — instant transfers via RTP

Key Benefits

What changes for your team

Outcomes that matter to the teams responsible for payments, product delivery, and operations.

• Seconds, Not Days: Settlement in seconds gives your users immediate confirmation and your operations team real-time visibility into payment outcomes.

• Same API, Faster Rails:
  Initiate real-time payments through the same API you use for ACH. No separate integration, no different error handling, no new vendor.

• Consistent Behavior Across Rails:
  Status updates, webhooks, and exception handling work the same way whether a payment travels over ACH or real-time rails.

• Flexible Speed Selection:
  Choose the right rail for each payment based on urgency, cost, and recipient preferences. Dwolla handles the routing.

How It Works

From integration to production

01
Enable real-time rails
Activate RTP and FedNow capabilities through your existing Dwolla integration. No new API endpoints, no separate onboarding.

02
Set speed preferences
Configure which payments should use real-time rails based on your business rules: amount thresholds, recipient type, or urgency level.

03
Monitor in real time
Track payment confirmation in seconds with the same webhooks and status updates you use for ACH. Full visibility from initiation to completion.