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  • Frank Tian

RTP and Car Payment

Selling an old car? Get paid before it leaves your driveway.

A new use case of Real-Time Payment for US consumers.


Lithia Motors, an online car dealer for new and used vehicles

Launched its e-commerce driveway strategy


Consumers who sell their used cars to the dealership from their home

Can receive real-time payment, enabled by U.S. Bank


The car sales are largely done online plus an in-person inspection

Payment will be deposited in a bank account as soon as the deal is done

Even before the car leaves the driveway


The fast payment would give Luthia a competitive edge

Normally the transaction will take days to settle


This is an application of the Real Time Payment - RTP


The Background:

RTP Network was launched in 2017 by The Clearing House

which is owned by a group of banks, including U.S. Bank


RTP enables various payments such as B2B and P2P

The pandemic clearly accelerated the adoption of RTP (see graph)


The Fed will introduce its own real-time payments service next year

Which will further advance payment innovation and competition


Graph source: The Clearing House


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