Chesapeake Bank, a community bank with deep roots in Virginia dating back 125 years, has been at the forefront of payments innovation. As one of the earliest adopters of the RTP® network, joining as the 21st participant in May 2020, Chesapeake Bank has leveraged instant payments not only to modernize its services, but also to develop innovative solutions that solve real-world problems for its customers.

DJ Seeterlin, President at Chesapeake Payment Systems, a division of Chesapeake Bank, explains that early participation in the RTP network was a deliberate move. “We needed to learn some things before we were ready to launch instant payments or innovate on top of it,” he says. That early adoption enabled the bank to experiment and iterate before scaling its RTP usage. “By getting in early, we learned early. And then we were able to start originating early and doing new things.”

One of the first insights Chesapeake Bank gained through receiving RTP payments was understanding how customers were using the service, oftentimes without the customer even realizing it. Many payments were tied to digital wallet cash-outs or merchant payouts, use cases that weren’t anticipated when the RTP network launched, but have proved highly valuable. These learnings helped shape Chesapeake’s strategy and confirmed the need to develop products that supported instant settlement and customer convenience.

Innovating Merchant Settlement and Factoring
Chesapeake Bank has strategically embedded instant payments into key business units, particularly Chesapeake Payment Systems and Flexent Freight Funding, its trucking-focused factoring arm. Flexent’s factoring service was enhanced with the RTP network’s instant payment capabilities to address critical cash flow challenges for small operators. Truckers used to wait days for ACH transfers or rely solely on fuel cards, which limit where a trucker can use the funds. Now, they receive instant payouts to their bank accounts, giving them the flexibility to pay for essentials like food, lodging, or repairs—when and where they need it. “We’re not just replacing payments—we’re actually creating net new payments by giving customers choice,” says Seeterlin.

The Flexent launch has not only improved customer satisfaction and operational efficiency but also delivered strong ROI. “Truckers have been very excited about it and it has been broadly adopted. And as a banker, I appreciate that. Two months after we launched the product, we were making money on it,” Seeterlin notes. “It’s revenue-positive for us.”

Chesapeake Payments Systems is building on the success of its Flexent offering by developing a new product tailored for instant payments over the RTP network. The new solution aims to accelerate merchant settlement, potentially enabling funding after hours or over the weekend. This capability is especially critical for small businesses that rely on fast access to capital to replenish inventory or manage unexpected expenses.

Expanding Through Collaboration and New Platforms
Chesapeake Bank has also taken a leadership role in collaborative fintech development. Through a consortium of nearly 20 banks and Alloy Labs it helped with a new company, Rebolt Financial Technology, designed to build payment solutions for small businesses delivered directly through bank interfaces. The goal is to offer instant payment capabilities across multiple rails—RTP, FedNow®, ACH—without forcing business customers to turn to external fintech apps.

As a showcase bank for this platform’s upcoming launch, Chesapeake is pioneering a new model of community bank-led innovation that enhances customer experience while retaining deposit relationships.

Beyond Speed: Rethinking Risk and Strategy
While much of the conversation around instant payments focuses on speed, Seeterlin emphasizes the importance of availability and flexibility. “It doesn’t have to be there in two seconds to provide value,” he says. “It’s about being available seven days a week, allowing people to push the button when it suits them.”

Contrary to concerns in the industry, Chesapeake hasn’t needed to increase staff to support instant payments. The bank’s technology is designed to support automated fraud controls and thoughtful risk management. “We’ve created new products with instant payments that have brought in more customers and more revenue, but we haven’t had to increase staff,” says Seeterlin.

Advocacy and Industry Leadership
Seeterlin also brings his perspective to the national level through his involvement with the American Bankers Association’s (ABA) payments committee. A key passion is reducing reliance on paper checks, especially at a time when fraud rates are increasing drastically with checks. Instant payments, he believes, are a vital part of the solution. “Who else would write down their name, address, and account number and hand it to a stranger? That’s what we do with checks,” he says.

By building better digital payment solutions and making them accessible, Chesapeake is not only modernizing its own services but also paving the way for other community banks to follow suit.

Chesapeake Bank’s journey with the RTP network exemplifies how a community bank can lead innovation in real-time payments. By learning iteratively and focusing on real customer needs, Chesapeake has turned instant payments into a platform for strategic growth, customer empowerment, and industry leadership.