Carvana adopts real-time billing with Plaid's Request for Payment product for faster transactions.

From Yahoo Finance: 2025-06-26 12:30:00

Plaid is launching a Request for Payment (RfP) product, aiming to boost real-time payments adoption. RfP allows businesses to request payments from consumers or other businesses, with transactions running on FedNow and Real-time Payments networks. Carvana is among the first adopters, utilizing RfP for downpayments and faster transactions.

Carvana seeks to reduce friction and costs in high-value transactions by utilizing RfP instead of credit card payments. ACH rails have been their dominant payment method, but RfP offers instant settlement without high processing fees. RfP is especially beneficial for automotive retail due to large transaction sizes.

RfP adoption by consumers has been limited, mostly for regular payments like utilities or subscriptions. Financial institutions have been slow to adopt due to integration costs and regulatory monitoring requirements. However, banks like U.S. Bank have implemented RfP successfully for funding brokerage accounts, showcasing the benefits of instant availability.

Real-time payments tech, including RfP, are gaining popularity for high-value transactions, revolutionizing bill pay and credit card/mortgage payments. Businesses like Carvana are leveraging RfP to enable faster, cheaper transactions, moving away from traditional payment methods like ACH. Tesla is pushing for real-time payments adoption in auto finance, allowing customers to fund their loans instantly. While Request for Payment (RfP) reduces fraud risk, scams still exist, making people cautious about sharing banking details. Plaid’s secure system, Plaid Link, aims to alleviate these concerns and increase consumer adoption.

Read more: Why used-car dealer Carvana is pushing real-time billing