This post was originally published in May 2023 and was updated in September 2025 with additional information on instant payments.
The era of waiting days for B2B payments to clear is officially ending. While consumers have long enjoyed the convenience of services like Venmo and Zelle, the business world is now rapidly catching up.
Recent data confirms this shift. According to a late 2024 Federal Reserve survey, 66% of U.S. businesses are now likely to use instant payments if offered by their primary financial institution. This marks a significant leap in interest from the 46% in 2022.
The Federal Reserve’s FedNow Service, launched in 2023, and the ongoing expansion of The Clearing House’s RTP network have together generated significant momentum. With two robust networks enabling real-time, 24/7 payment processing, the infrastructure is in place. Now, the focus for finance leaders is shifting from awareness to strategic implementation.
“The problem with real-time payments is that there has been limited adoption in the B2B space,” says Nathan Baker, Director of Product Marketing for Billtrust. “Wait a few months, though, and instant payments will be hard to miss.”
The power of two: Understanding the FedNow and RTP networks
The backbone of the instant payment ecosystem in the United States consists of two independent but complementary networks. Their parallel growth is the primary reason instant payments have moved from a niche offering to a mainstream financial tool.
- The RTP Network: Launched in 2017 by The Clearing House, a private consortium owned by the world’s largest commercial banks, the RTP network was the first new payment rail in the U.S. in over 40 years. As the established first-mover, it has a significant footprint, particularly among large financial institutions, and has set the standard for real-time B2B payment capabilities.
- The FedNow Service: Operated by the U.S. Federal Reserve, the FedNow Service launched in mid-2023 with the goal of democratizing access to instant payments. It is designed to serve financial institutions of all sizes, promoting nationwide reach and ensuring that community banks and credit unions can offer the same cutting-edge services as their larger competitors.
What’s changed since launch? From novelty to normality
The most significant change between the initial launches and today is the rapid maturation of the ecosystem. In 2023, FedNow was a promising new technology; currently it has more than 1,400 participating organizations across all 50 states. And effective in November 2025, the FedNow Service network transaction limit will increase from $1 million to $10 million. This is the second increase for the year, highlighting the growing commercial demand since its launch.
Both networks have also evolved beyond simple credit transfers. They’ve build services like “Request for Payment” (RFP) messages, which allow billers to send an electronic invoice that payers can act on instantly. Critically, both run on the ISO 20022 messaging standard, the key enabler for attaching rich remittance data to B2B payments.
With this powerful infrastructure now widely available, the strategic advantages for businesses have never been clearer.
Read the blog → 4 reasons AP and AR teams can’t ignore instant payments
4 reasons instant payments are now a strategic imperative
For accounts receivable (AR) and accounts payable (AP) teams, instant payments are more than just a new feature—they are a catalyst for transforming the entire order-to-cash cycle. Here’s why your organization needs to prioritize instant payments:
1. Unlock immediate cash flow and optimize working capital
The most compelling benefit of instant payments is the immediate availability of funds, an increasingly appealing benefit in inflationary environments. This eliminates the cash flow uncertainty and wild fluctuations in Days Sales Outstanding (DSO) common with traditional payment methods.
Instant payments allow DSO to approach zero, providing immediate liquidity that can be used to fund operations, pay suppliers, or invest in growth—a powerful advantage in any economic climate.
2. Supercharge reconciliation with data-rich payments
Because both the FedNow and RTP networks run on the ISO 20022 messaging standard, detailed invoice and remittance data travels with the payment. This eliminates the disconnected and incomplete remittance data that forces AR teams to spend hours on manual matching.
Data is only as good as the system processing it. This is where Billtrust’s AI-powered Cash Application provides a critical advantage. Unlike competitors who rely on rigid, rule-based systems, Billtrust uses a confidence-based matching engine that leverages machine learning to interpret payment data. This allows payment data from any source—including instant payments—to flow directly into the cash application system, achieving up to 93.8% touchless payment matches and virtually eliminating manual reconciliation.
3. Control costs and reduce reliance on expensive methods
Businesses using credit cards are keenly aware of how card processing fees eat into profits. For merchants using Visa, Mastercard, Discover, or American Express, processing fees which can range from 1.3% to 4%, cut into profitability. With instant payments, those hefty transaction fees shrink considerably.
4. Win over customers with speedy instant payments
A smooth payment process is a key part of the customer experience. Offering instant payments makes you easier to do business with and meets modern buyer expectations.
The applications are endless. Imagine an insurance company immediately paying a policyholder after a disaster, providing critical funds in minutes, not days. Or a business paying its vendors or contractors at the end of a shift, improving supplier relationships and loyalty. This level of responsiveness builds trust and can become a significant competitive differentiator.
Read the blog → How to optimize cash flow by defining payment policies
Accelerate your cash flow with modern payment solutions
Finance leaders who want to eliminate payment delays and reduce processing costs need payment solutions that deliver immediate results. Billtrust’s platform enables businesses to not only accept instant payments but to integrate them into a seamless, automated order-to-cash process.
With over two decades of experience, Billtrust combines a highly configurable payments platform with AI-powered automation to help finance teams control costs, accelerate cash flow, and improve customer satisfaction.
- End-to-End Automation: Our platform automates the entire payment lifecycle, from acceptance through cash application, freeing your team from manual, repetitive tasks.
- AI-Powered Insights: Billtrust’s AI capabilities provide visibility across your AR operations, helping you manage a real-time payments environment with confidence.
- Unmatched Flexibility: Set granular payment policies aligned with your business goals, giving you precise control over your financial operations.
Discover how our modern payment solutions can transform your accounts receivable operations and give your business the power of real-time cash availability.
Frequently Asked Questions
Check out the FAQs for general questions. Find helpful answers quickly to get the information you need.
How do instant payments improve cash flow management for finance teams?
Instant payments provide immediate access to customer payments, eliminating the delays that traditionally extend DSO. When customers pay through instant payment systems, finance teams can deploy that cash immediately—supporting operations, reducing borrowing costs, and creating flexibility to capitalize on opportunities. This real-time cash availability transforms working capital management and enables better planning for growth.
What should finance leaders consider when implementing instant payments?
Finance leaders should ensure their banking relationships support instant payment networks and evaluate how this capability aligns with customer payment preferences. Consider training needs for AR teams and how immediate payment availability will impact cash forecasting processes. The key is understanding how instant payments can help control costs, accelerate cash flow, and improve the payment experience offered to customers.
Which industries benefit most from instant payments?
Manufacturing, distribution, and equipment companies see advantages from instant payments due to their complex supply chains and working capital requirements. These industries often manage large transaction volumes and benefit from immediate cash availability to optimize inventory management, supplier payments, and operational cash flow.
