RTP Growth, AWS Disruptions, and a Mobile Wallet Showdown

This week’s Today in Payments covers the Federal Reserve’s consideration of granting limited access to its payment rails for non-bank fintechs, a record-breaking day for the RTP network, and strong Q3 numbers from the ACH system. We also explore how a widespread AWS outage disrupted payments nationwide—and why slow responses may lead to a surge in chargebacks. Finally, Apple Pay turns 11, but faces growing competition as more consumers adopt mobile wallets like Google Pay, PayPal, and Cash App.

Welcome to Today in Payments, I’m your host, Patti Murphy, here with your weekly dose of payments notes.

Fed Considers Access Privileges for Non-Bank Payments Companies

The Federal Reserve Board staff is evaluating the possibility of granting non-bank financial technology firms—including crypto companies—access to its payment rails. Fed Governor Christopher Waller shared this development during a payments conference in Washington this week.

The idea, which Waller refers to as a “skinny” master account, is to offer limited payment services to companies that currently rely on federally insured financial institutions for access to the Fed’s clearing and settlement services.

There would be distinct differences between these “skinny” accounts and full-fledged master accounts. For instance, the Fed would not pay interest on balances. Balances would likely be capped, and there would be no “daylight overdraft” privileges that traditional financial institutions can access during the business day. These accounts would also be ineligible for discount window borrowing.

Still, the implications are significant. Master accounts have long served as a protective moat separating insured financial institutions from other players in the financial system.

“The upshot is that, in my view, the payments landscape—as well as the types of providers—has evolved dramatically in recent years, and, accordingly, a new payments account could better reflect this reality,” Waller told attendees.

One caveat, however: progress at the Fed tends to be slow. Case in point—the Fed Board issued a request for public comment back in August on whether to extend FedWire’s operating hours to 22 hours a day, 6 days a week, including weekday holidays (adding Sundays to the schedule).

Currently, FedWire operates 22 hours a day, 5 days a week, excluding weekday holidays. But even if approved, the new 22x6 schedule wouldn’t take effect until 2028 or 2029.

Record Set on RTP; NACHA Reports B2B Volume Up 10% in Q3

The Real-Time Payments (RTP) network, operated by The Clearing House, hit a new single-day record earlier this month: 1,808,967 transactions processed, totaling $5.2 billion. That averages out to just under $2,874 per transaction.

According to TCH, the spike was driven by a “broad mix of use cases,” including gig worker payouts, account-to-account transfers, digital wallet funding, and B2B payments. With RTP’s transaction limit raised to $10 million earlier this year, high-value payments have continued to increase.

Meanwhile, NACHA reports a 10% year-over-year increase in B2B payments via the ACH network during Q3, reaching a total value of $16 trillion—an 8.8% increase. B2B payments represented 69% of all funds moved via ACH in the quarter. Same-Day ACH B2B payments totaled $585 billion, a 15% rise over Q3 2023.

In total, ACH facilitated 8.8 billion payments valued at $23.2 trillion in Q3. That’s a 5.2% increase in volume and an 8.2% increase in value compared to Q3 2024. Much of the growth came from person-to-person transactions, which jumped 22.7% to 122.2 million.

AWS Outage Hit Payments, Too

The recent Amazon Web Services (AWS) outage that took down hundreds of websites and apps also disrupted the payments world. The outage began just after 3 a.m. Eastern Time due to a domain name system (DNS) error and wasn’t fully resolved until just before 7 p.m.

As one academic explained it, DNS functions like a cloud-based version of the White Pages—without it, systems can’t find what they’re looking for. A Fresno, CA news outlet reported that gas stations and coffee shops couldn’t process credit card transactions, causing delays for customers trying to get to work.

But the impact could go far beyond a single day. Monica Eaton, Founder and CEO of Chargebacks911, told The Green Sheet that the outage is likely to trigger a “domino effect” of customer disputes and chargebacks.

As merchants and providers sort through the aftermath, Eaton warned that the real damage comes not from the outage itself, but from slow or poor responses. “Downtime happens, but silence and slow responses are what cause real damage,” she said.

Apple Pay Turns 11, But Competition Grows

Apple Pay turns 11 this year. While it wasn’t the first mobile payment app—Google Wallet came three years earlier—it was the one that pushed mobile wallets into the mainstream.

Today, Apple Pay holds a strong lead, accounting for nearly half of U.S. mobile wallet users and a majority of in-store mobile payments. But according to a new report from PYMNTS.com, that dominance may not be guaranteed for much longer.

Here are some key takeaways from the report:

• More than 30% of U.S. consumers now use a mobile wallet in-store weekly, up from just 14% last year.

• Top reasons include forgetting their physical card or wallet, convenience, speed, and perceived security.

• Competitors like Google Pay, PayPal, and Block’s Cash App are gaining ground with steadily growing user bases.

The bottom line? The future likely holds a more competitive, multi-wallet ecosystem—even as Apple Pay continues to lead for now.

That’s all for Today in Payments. Stay tuned for your weekly dose of payments notes.