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How Real-Time Payments Will Reshape The Future of B2B Payments

Mar 1, 2022

The final installment in our real-time payments (RTP) series delivers the insights businesses need to navigate this new world when it comes to B2B payments. Firstly, we look at the five categories of real-time payments shaking up the payment ecosystem. Then we examine where companies will see the most considerable benefits. We conclude with their importance in the B2B payments space and provide the solution businesses can deploy today. 

Even though it might feel like the pace of RTPs is moving at a snail’s pace, Canada is on the cusp of a financial revolution. And when Canada’s real-time payments system (RTR)goes live this year, we can expect things to heat up. With the RTR in place, Canadians will send payments and receive irrevocable funds in seconds.

Real-time rails mean real-time payments — 24 hours a day, 365 days a year.

The 5 categories of real-time payments

According to Deloitte, our current payment ecosystem is in for a shake-up. While the five following categories each have their own recognized activity and propensity for disruption, it is B2B that holds the focus. Over the last two years, businesses have pivoted to new practices. What we see in B2C is beginning to heavily influence the B2B payment space. Just like no one will mail a check to Netflix to watch an on-demand movie, businesses are no longer willing to wait days for their payments to process. 

“We have seen a rapid increase in the number of new originators sending thousands of dollars in B2B payments.” 

Steve Ledford, The Clearing House (US)

Real-time payment categories

B2B payments shift to RTP

RTP will transform the way we do business. Instant settlement = instant access to those funds. In other words, this type of instant can be a make or break for enterprises and individuals that need funds immediately. In fact, business leaders in the U.S. say that the ability to access real-time payments has quickly become a critical issue. Most recently, one of America’s oldest and largest financial institutions, Citizens Financial Group, found nine out of 10 businesses are zeroing in on RTPs. The bank conducted a survey with several companies with revenues everywhere from $1 million to $100 million across various sectors about the benefits of RTP. The results were not surprising, and the business case for real-time payments became quite clear.

52% expect an improvement in cash flow management

46% believe it will help them conduct general accounts payable activities, including payroll

42% say it will facilitate payments requiring immediate receipt

40% feel it will dramatically improve collection activity and posting to clients’ accounts.

Addressing the business pain points. Real-time payments are the solution behind the companies’ AR unknowns. Forget how long a cheque is stuck in the mail; there is no need to worry about when a payment will arrive or when a payment will be processed. As illustrated above, not only will RTPs give companies a much-needed cash flow management boost, they will also gain savings from a massive reduction in workforce resources.

Customer service will thrive with real-time payments

How RTPs work in B2B payments

Equally important, real-time payment rails bring end-to-end communication. As a result, everyone involved has a more efficient and effective payment journey. Real-time payments connect the payment with payment data together in a single transaction. 

“By 2025, 30% to 50% of B2B payments will not only be done digitally but they will also be done in real-time.

FIS Senior Vice President of Digital Payments Ginny Chappell

Payments will no longer move strictly in one direction from the payer to payee. We are now talking about bilateral communication, which includes notifications of confirmations and settlements. 

Real-time B2B payments improve your cash position, liquidity management and financial control.

Ping… Merchant XYZ has paid invoice #101 for $1250, the transaction has been successful, these funds are accessible in your account.

Real-time transaction status

VoPay RTPs for B2B Payments

Take control over your cash flow. No one gets the importance of real-time payments better than us.

VoPay offers two real-time payment solutions to our clients. 

VoPay’s e-Transfer for Business – a simple, convenient, and secure way to send and receive near real-time payments at scale directly from one bank account to another. Keep it simple. Already well recognized in Canada, Interac e-transfers is a standard payment method to Canadians. Businesses can send unlimited transfers up to $25,0000 per transaction using only an email address – 24/7/365.  

VoPay Instant – Visa Direct enables safe, convenient and real-time push payments to any Visa bank account s across Canada. Transactions are processed in real-time. Funds are available immediately so that businesses can access the funds when they need them.

All of VoPay’s solution services are through a simple API integration or VoPay’s intuitive payment portal. 

Contact VoPay today to discuss VoPay’s real-time solutions for your Business.

Learn more about real-time payment transactions in our RTP series. 

Real-Time Payment Series: Part 1 Understanding the Landscape

RTP Series: Part 2 Are Canadian Businesses Ready?

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