The world is moving fast. From same-day e-commerce delivery to instant streaming services, technological advancements have improved digitalization across multiple industries. This is also true for payments.
Increasing adoption of instant payments and Same Day ACH is an impetus for change, ushering the payments industry toward streamlined, electronic payments. Instant payments also represent an opportunity for businesses to gain better control of their cash flows. However, the pace of business-to-business (B2B) instant payment adoption will depend on how interoperability and connectivity issues are addressed.
B2B payments historically have been inefficient due to high costs and manual processes. The Federal Reserve System is committed to supporting the industry in addressing this challenge and modernizing electronic B2B payments. A key initiative is the development and implementation of an exchange framework (Off-site), which is an electronic delivery network based on a set of technical standards and policies that allows businesses to securely share supply chain documents with one another.
Together, instant payments and an exchange framework present a significant opportunity for businesses to increase the speed and efficiency of electronic B2B payments. To learn more about the details of how instant payments will work together with electronic invoicing (e-invoicing) and electronic remittance (e-remittance) data, read the full article (Off-site) on FedPaymentsImprovement.org.
