Real-time payment systems are becoming more common around the world, and the United States is about to hit its stride in that domain when FedNow debuts. This will have significant implications for all sectors of payments, including the business-to-business (B2B) sector.

In a recent PaymentsJournal podcast, Mike Kresse, Head of B2B and Money Movement at FIS, and Brian Riley, Co-Head of Payments at Javelin Strategy & Research, discussed how real-time payments will play out in the B2B sector, and how the U.S. rollout will differ from how it played in other countries. They also delved into how interoperability, simplicity, and reduced cost will drive rapid adoption of real-time payments, even though that adoption does not have a direct mandate from the federal government. It’s similar to how movie streaming rapidly gained dominance over broadcast television.

PaymentsJournalReal-Time Payments Are Driving B2B InnovationPaymentsJournal Real-Time Payments Are Driving B2B InnovationPaymentsJournaljQuery(document).ready(function ($){var settings_ap75128568 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"75128568",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_418032_28",settings_ap75128568); }catch(err){ console.warn("cannot init player", err); } });

Biggest Trends in Global B2B Payments

Although some countries have mandated the use of real-time payment systems for incoming and outgoing payments, the United States has not (yet) done so, reflecting its decentralized, market-driven approach.

“Adoption in the U.S. around real-time payments is going to be more focused around the use cases in specific industries,” Kresse said.

One such use case that is ripe for development is the automation of back-office processes, including collections management and accounts receivable and payable. Such automation is becoming more prevalent as companies seek to streamline their operations through technology.

As FedNow accelerates the adoption of real-time payments, a wider range of banks will seek to plug into its system. This brings opportunities but also certain risks.

“There’s a dark side to real-time payments—many of them become irrevocable, and that’s the problem we’ve seen in the industry as this starts,” Riley said.

As more people become accustomed to using peer-to-peer (P2P) apps to send money to friends and family, they will also naturally become more comfortable with the idea of using these apps for business transactions. As more businesses move online and embrace digital tools, they are also looking for ways to streamline their payment processes and make transactions more efficient. P2P payment apps have paved the way for this shift, and businesses are beginning to see the potential benefits of using these tools for B2B payments.

“It typically starts from a consumer-to-consumer standpoi...