The U.S. payments landscape is rapidly evolving. In this increasingly digital world, consumer payments are becoming both faster and more widely available due to technological advances.
Despite this progress, business-to-business (B2B) payments are in danger of being left behind. The B2B payments process is largely still fragmented, often requiring manual processing with multiple steps and the opportunity for error. This lack of digitalization makes B2B payments more prone to fraud and more costly than other payments.
The Federal Reserve recognizes that challenges exist on the path to a more efficient U.S. payment system and is coordinating with the industry to propel B2B payments toward modernized, electronic solutions that reduce manual intervention. This new era of digitalization will improve efficiency across the end-to-end payments process and will bring many benefits to businesses of all kinds.
To catalyze this evolution, the Fed and Business Payments Coalition (BPC) have organized work groups dedicated to change: optimizing efficiency in electronic invoicing and remittance delivery. These work groups are on the front line of B2B payments modernization, and their work will drive innovation in the United States.
Explore a new video, the first in a three-part series, on how the Fed’s collaboration with the industry today will transform B2B payments tomorrow.
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