B2B Instant Payments + E-Invoicing: A Perfect Marriage
FPC Business Benefits of B2B Instant Payments Work Group
The Faster Payments Council’s Business Benefits of B2B Instant Payments Work Group is on a mission: to raise awareness, foster adoption, and accelerate innovation around instant payments. Together, subject matter experts from across industries are shaping a future where faster, smarter financial operations become the standard in business-to-business (B2B) transactions.
In the digital age, many aspects of business have evolved—but B2B payments still lag far behind. Despite the rise of automation and real-time data in other areas, most businesses continue to rely on slow, manual, and error-prone invoice and payment processes. On the accounts receivable (order-to-cash) side of processing, today’s B2B transaction workflows are riddled with inefficiencies, from waiting days for checks to clear, to matching invoices and credit notes with payments, and reconciling those payments with bank statements. On the accounts payable (procure-to-pay) side, manually entering and reconciling invoices against purchase orders and shipments is time consuming, error prone, and inefficient.
But there is good news. The convergence of instant payments and e-invoicing is poised to reshape the B2B payments landscape entirely. When combined, these two technologies offer a powerful, end-to-end solution that automates the payment lifecycle—from procure-to-pay and order to cash—covering key stages like processing, settlement, and reconciliation.
This blog explores why this pairing is so powerful—and why businesses should act now. Expect additional blog(s) from the Work Group on industry adoption challenges and how to overcome the same.
The Problem: Today’s B2B Payments Are Broken While consumer payments have gone digital and mobile, business payments remain stuck in a fragmented and outdated system. This leads to slower payments, higher costs, more errors, and poor visibility.
A recent study by the Federal Reserve[1] highlights these inefficiencies and the demand for instant payments:
48% of the businesses surveyed cited high costs, 32% security issues, and 32% a lack of timeliness as top challenges across all payment types.
56% of businesses surveyed selected lower costs as a top benefit/motivator of adoption for instant payments. These savings could be manifested by offsetting other fees and reducing manual processing.
Timeliness is also becoming more attractive, with 41% of businesses citing greater flexibility, 37% citing 24/7 year-round service, and 36% citing instantly available funds as core motivators.
Non-instant payments are more than just a delay—they trigger a cascade of challenges across the business, leading to the following realizations:
Delayed Payments Hurt Cash Flow: Most B2B payments still rely on methods like paper checks, wire transfers, and ACH. These can take anywhere from two to five business days—or more—to settle. This time lag creates cash flow gaps, especially for small- and mid-sized suppliers who need timely payments to manage payroll, inventory, and operations.
Manual, Paper-Based Processes, Waste Time and Money: Many businesses still create and process invoices manually. Paper invoices, email attachments, and manual data entry across systems lead to frequent mistakes, payment delays, and higher administrative costs. For accounts payable (AP) and receivable (AR) teams, this manual burden slows down the entire transaction lifecycle.
Fragmentation and Complexity in Payment Data: With different systems, formats, and protocols used by suppliers, buyers, and banks, exchanging transaction data often requires normalization, mapping, or even manual intervention. This creates friction, slows down automation, and increases reconciliation errors.
Poor Visibility and Tracking: When payments and invoices are processed separately, it becomes difficult to track the status of an invoice or determine whether a payment has been received. Finance teams often spend hours chasing down remittance information or clarifying for what purpose a payment was made.
Security Risks: Manual and paper-based processes are not only inefficient—they are also insecure. Checks can be intercepted or altered, and fraudulent invoices can slip through without proper controls or audit trails.
The Solution Part 1: Instant Payments Bring Speed and Certainty Instant payments clear and settle in real-time, 24x7x365. They are irrevocable, with guaranteed funds, and can carry structured data—such as remittance details—to support reconciliation. Instant payments bring the following benefits to traditional payment processing:
Speed - Payments Settle in Seconds: Funds are transferred and made available instantly, which eliminates waiting periods and unlocks working capital. This is particularly valuable for suppliers who need immediate access to funds after a sale.
Efficiency - No More Manual Approvals or Uploads: Instant payments support straight-through processing (STP)—automated from initiation to settlement without manual intervention. This reduces human error and the cost of manual AP/AR operations.
Improved Cash Flow and Liquidity: For both buyers and suppliers, real-time settlement means improved control over cash positions and fewer surprises. Businesses can better predict cash inflows and outflows and reduce reliance on credit lines.
Reduced Risk - Irrevocability Means Confidence: Because instant payments are final and cannot be reversed, suppliers are more willing to offer favorable terms or incentives to buyers using this method. This builds trust and strengthen supplier relationships.
Better User Experience with QR Code Integration: QR codes embedded or included with invoices can provide a seamless way for buyers to view invoice details and initiate instant payments via their bank or wallet. This combines transparency with convenience and speed.
Fight Fragmentation with Standards-Based Approaches: Using payment standards like ISO 20022, businesses can reduce data fragmentation and ensure consistent formatting of remittance data—making payment automation and reconciliation much easier. The RTP® network and FedNow® service leverage ISO 20022’s structured remittance data elements to enable automated, straight through processing for accounts receivable.
The Solution Part 2: E-Invoicing Unlocks Automation and Accuracy E-invoicing refers to the digital creation, exchange, and processing of invoices between businesses. Unlike PDFs or email attachments, e-invoices use structured data formats such as UBL[2] used by the Digital Business Networks Alliance[3] or EN 19631[4] used by Pan-European Public Procurement On-Line[5] that can be processed automatically by systems.
E-invoices offer a form of Request-for-Payment (RfP) like those offered via the ISO 20022 RfP message (i.e., RfP pain.013) leveraged by the FedNow service and RTP network, but at a more detailed level. When combined with more complex B2B payments involving invoices with purchase orders, receipt level details, discounts, taxes, and more, e-invoices provide the structured data needed load invoices into AP systems, while instant payment requests facilitate and automate the payment itself.
Automation: End-to-End Invoice Lifecycle Management: End-to-end invoice lifecycle automation speeds up the timing, eliminates manual data entry and paper handling, and facilitates the subsequent instant payment experience. E-invoicing enables automatic invoice creation, delivery, approval, and the matching of purchase orders and received goods. This eliminates the need for paper handling or manual keying of invoice data.
Accuracy: Eliminate Manual Errors: With structured data and system-to-system exchange, e-invoicing dramatically reduces common issues like duplicate entries, mis-keyed amounts, or lost documents.
Operational Efficiency and Cost Savings: By removing the need for paper, postage, printing, scanning, and manual input, companies can save significant costs—both in labor and material.
Compliance and Tax Audit Readiness: E-invoicing creates a digital audit trail, supports real-time indirect tax reporting, and simplifies regulatory compliance across authorities. Many global regions already mandate e-invoicing for value added tax enforcement.
Environmental and ESG Benefits: Paperless operations align with sustainability goals and reduce the environmental footprint of B2B transactions.
The U.S. Finally Moves Toward Standardization: Although the U.S. has lagged in e-invoicing adoption, the DBN Alliance is changing this trend. Their “B2B Digital Highway” initiative is building a framework for nationwide interoperability—paving the way for broader adoption of e-invoicing in the U.S.
The Perfect Marriage: Instant Payments + E-Invoicing Separately, instant payments and e-invoicing each bring significant value. Together, they unlock even greater potential, including:
End-to-End AP Automation: When a digital e-invoice is generated and automated into the AP process, an RfP is initiated via instant payment rails—creating a fully automated, digital-first transaction experience.
Real-Time AR Reconciliation: Because payment messages can carry structured remittance data, invoices and payments are automatically matched in real time—no more manual reconciliation headaches.
Enhanced Visibility and Control: Buyers and suppliers gain full transparency into the status of invoices and payments. Finance teams can access dashboards showing cash positions, invoice aging, and exceptions—updated in real time.
Smarter Payment Workflows: For example, a supplier may send a structured e-invoice to the buyer. The buyer’s system can automatically trigger an RfP through the instant payment rails. A QR code can provide access to invoice details, and the buyer can approve and settle the invoice instantly. When multiple invoices are involved, a single bulk payment can be sent with full remittance data that closes out all linked RfPs and open invoices—keeping everyone aligned.
Reduced Risk and Fraud: Digital authentication, encryption, and end-to-end traceability drastically lower the risk of payment fraud or invoice tampering.
Implementation Considerations To adopt this modern approach of marrying e-invoicing with instant payments, businesses need to consider:
System Integration: Ensure enterprise resource planning systems, AP/AR, and treasury systems can handle structured data and connect to instant payment rails.
Security Protocols: Use encrypted channels, tokenized access, and strong authentication to secure sensitive financial data.
Regulatory Compliance: Stay informed about e-invoicing mandates, tax rules, and payment regulations in each operating region.
Change Management: Invest in training, onboarding, and collaboration with partners to ensure smooth adoption.
User Experience Design: The ability to scan a QR code on an invoice and immediately approve and pay it with one click is not just efficient, it is transformational.
Real-World Momentum Industries like manufacturing, supply chain management, and professional services are already seeing measurable gains from integrating instant payments and e-invoicing:
Reduced Days Sales Outstanding
Lower operating costs
Greater agility in supply chain payments
Improved supplier satisfaction scores
What is Next? The future of B2B payments is digital, data-driven, and real-time. As standards solidify and interoperability improves, expect further innovation, especially in areas like:
Cross-border instant payments
Stablecoin and Central Bank Digital Currency settlement options
Smart contracts that automate invoice validation and settlement
Conclusion Instant payments and e-invoicing are not just technology upgrades—they are a strategic advantage and are in high demand. Together, they represent a leap forward in how businesses transact, free up working capital, reduce friction, and future-proof financial operations. The future of B2B payments is instant. It is digital. And it is already here.
We're shaping the future of B2B payments—and your input matters!
Help us identify the real-world barriers and opportunities for instant payments in your business. By completing this brief survey, you'll help guide the priorities of the Faster Payments Council's B2B Work Group.
Business Benefits of B2B Instant Payments Work Group
Thank you to the members of the FPC Business Benefits of B2B Instant Payments Work Group (B2BWG) who contributed to this blog.
B2B Instant Work Group Leadership Finzly Dean Nolan (Chair)
Finvix Technologies Andres Garbarini (Vice Chair) B2BWG Blog Primary Authors Finvix Technologies Andres Garbarini Vments, Inc. Steve Wasserman
B2B Work Group - Additional Members 1st Source Bank Jamie Bankert
Alogent Doug Hendricks
Euronet Worldwide Rohan Bakshi Euronet Worldwide Audrey Blackmon
Euronet Worldwide Brendyn Sullivan
Euronet Worldwide Romil Trivedi
Fintech Consulting, LLC Marcia Klingensmith
Icon Solutions Arjeh van Oijen
NAYA Sherif Kozman
Pidgin Angela Murphy Serio Payments Consulting Anthony Serio, Editorial Review
SRM Larry Pruss
The Central Trust Bank Sara Kerperin
Zumigo, Inc. Yu-Ting Huang About the Business Benefits for B2B Instant Payments Work Group
Accelerate the adoption of instant payments for businesses by addressing key challenges and identifying best practices with B2B Instant Payments.
About the U.S. Faster Payments Council
The U.S. Faster Payments Council (FPC) is an industry-led membership organization whose vision is a world-class payment system where Americans can safely and securely pay anyone, anywhere, at any time and with near-immediate funds availability. By design, the FPC encourages a diverse range of perspectives and is open to all stakeholders in the U.S. payment system. Guided by principles of fairness, inclusiveness, flexibility, and transparency, the FPC uses collaborative, problem-solving approaches to resolve the issues that are inhibiting broad faster payments adoption in this country.