For auto dealers, receiving loan funding via the RTP Network helps them maintain a competitive edge, better control their cash flow and improve their contract-in-transit metrics, U.S. Bank noted in its press release. The bank said it will continue creating other new real-time payment options for companies. 

“U.S. Bank is focused on delivering innovative real-time payment solutions to resolve what our customers tell us are their payments pain points,” John Hyatt, president of dealer services at U.S. Bank, said in a statement. “We’re simplifying loan payment processes to help our dealer clients better control their cash flow, which gives them a competitive edge and peace of mind.”

The new offering from the Minneapolis-based bank lets dealers finalize their car sales quickly after a consumer loan is approved, and that’s especially beneficial during the evenings and on weekends when in the past there was less support for those transactions.

The introduction of auto loans via the RTP Network follows U.S. Bank’s partnership with Lithia Motors to provide instant payments for car sellers using the same network. In that real-time embedded payments use case, customers looking to sell their car through Lithia’s online car sales system can receive instant payment after a valet performs an in-person inspection in the consumer’s driveway and finalizes a sale.

The Clearing House has spent $320 million in hopes of establishing a real-time payments network that would attract businesses seeking speedier payments and the efficiency that comes with them. TCH establishes partnerships with entities like U.S. Bank.

Soon, the RTP Network will have competition because the Federal Reserve is developing a rival real-time payments network, but that government-backed system won’t be available until next year.

Meanwhile, as the U.S. rushes to modernize its payment system, other countries, including Brazil, South Korea and India, have adopted faster payment protocols, a study conducted by ACI Worldwide and the Centre for Economic and Business Research found. Once the Federal Reserve finishes the FedNow system, it will provide U.S. companies with an alternative to existing Visa and Mastercard networks and slower automated payments.