Understanding How Banks Actually Move B2B-Sized Money in Real Time

Better payments help power better businesses. But across the B2B landscape, where payments can often entail intricate workflows, such as multi-entity approval processes, compliance checks, and liquidity management to name just a few, “better” can mean different things to different businesses.

For large enterprises with global operations, better B2B payments might focus on optimizing liquidity management, ensuring that funds flow efficiently across borders while minimizing costs and delays. In contrast, smaller businesses might prioritize simplicity and cost-effectiveness, looking for a solution that reduces administrative overhead while still enabling them to handle complex transactions.

Ultimately, “better” in B2B payments is about optimizing the whole process to align with each organization’s unique priorities. Whether through automation, integration of real-time data or adopting flexible payment solutions, the goal is to make payments faster, more reliable and adaptable to the evolving needs of a business.

Still, as initiatives like the Single Euro Payments Area (SEPA) instant payment framework in the European Union (EU) go live, and as organizations like the Bank for International Settlements (BIS) push for ongoing adoption of the harmonized ISO 20022 data requirements, the gap between “better” payments and “business as usual” may only grow further atop of the back of new data standards and instant rails, particularly for cross-border B2B commerce.

Read more: How Real-Time Data Impacts Liquidity Performance

The Technical Realities of Real-Time B2B Payments

The demand for real-time payments in particular has been growing exponentially, fueled by globalization, digital transformation and the expectation for immediate financial settlements.

Jim Colassano, senior vice president, RTP business product management at The Clearing House, said the ability to send money instantly, 24/7/365 has been gaining wide embrace across a variety of use cases — including business users.

“The feedback that we get, not only from consumers, but also from the business community, is that when you see it,” he said of instant payments, “when you actually experience it, both from an origination standpoint and from a receiving standpoint, you want to do more, you want this to be the payment mechanism that you would like to use.”

Despite the simplicity suggested by the term “real-time payments,” the underlying infrastructure that enables banks to transfer B2B-sized money in real-time is a complex amalgamation of technology, compliance requirements and network coordination.

One of the biggest hurdles in real-time payments is interoperability—getting different systems, languages and regulations to work together seamlessly. Banks often rely on middleware or software that acts as a translator between outdated legacy systems and cutting-edge payment networks.

At the same time, real-time payments aren’t just about moving money quickly; they’re about moving a lot of money quickly. For B2B transactions, where sums can easily climb into the millions, liquidity management is critical.

A company’s ability to manage its cash flow across multiple markets and jurisdictions requires real-time visibility into its payment operations. Delays in payments, along with the added complexity of cross-border transactions, can create cash flow problems that affect the day-to-day functioning of the business.

Against this backdrop, relying on real-time systems can often require pre-funded accounts at central banks or clearinghouses to guarantee instant settlement. This delicate balance is one of the most important aspects of financial management for CFOs, and improved payment systems can provide better tools to support these decisions.

Read more: SEPA Instant Payments Push Banks and B2B Payments Into the Future

Tailoring Innovation to Meet Diverse Business Needs

The race to real-time, at its heart, isn’t just about speed — it’s about delivering the transparency, precision and reliability that today’s businesses are coming to demand.

Automation and integration are increasingly essential tools in streamlining B2B payment workflows. By automating approval processes, businesses can reduce delays, ensure compliance and improve operational efficiency.

Technologies such as robotic process automation (RPA) and artificial intelligence (AI) can be leveraged to handle routine approvals, flag potential issues and even suggest alternative solutions in real time. Additionally, integrated payment solutions that allow real-time tracking of approvals and financial flows can enhance transparency, making it easier for businesses to manage complex workflows.

By incorporating real-time data into payment platforms, businesses can gain immediate insight into their cash positions, enabling more effective cash flow forecasting. Advanced payment systems can also help manage multiple currencies, reducing the need for costly conversion fees and eliminating delays in processing.

The PYMNTS eBook, “12 Ways Instant Payments Delivers Value Across the Financial Ecosystem,” found that instant methods are transforming cash flow management, especially for microbusinesses. In fact, nearly one-third of small and medium-sized businesses (SMBs) now primarily receive ad hoc payments via instant methods, rapidly displacing traditional checks.

Ultimately, one of the most critical aspects of improving B2B payments is ensuring that the solutions a business adopts today are adaptable for tomorrow. As companies grow and expand into new markets, their payment systems must be scalable to handle increased transaction volumes, new payment methods and more complex workflows.

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