SummaryA time‐domain meshless algorithm based on vector potentials is introduced for the analysis of transient electromagnetic fields. The proposed numerical algorithm is a modification of the radial point interpolation method, where radial basis functions are used for local interpolation of the vector potentials and their derivatives. In the proposed implementation, solving the second‐order vector potential wave equation intrinsically enforces the divergence‐free property of the electric and magnetic fields. Furthermore, the computational effort associated with the generation of a dual node distribution (as required for solving the first‐order Maxwell's equations) is avoided. The proposed method is validated with several examples of 2D waveguides and filters, and the convergence is empirically demonstrated in terms of node density or size of local support domains. It is further shown that inhomogeneous node distributions can provide increased convergence rates, that is, the same accuracy with smaller number of nodes compared with a solution for homogeneous node distribution. A comparison of the magnetic vector potential technique with conventional radial point interpolation method is performed, highlighting the superiority of the divergence‐free formulation. Copyright © 2015 John Wiley & Sons, Ltd.