Advanced technology, on-demand culture and the desire for more efficient business processes are driving the digitalization of the U.S. payments ecosystem, and consumer payments in particular.
Business-to-business (B2B) payments have an opportunity to evolve and transform alongside consumer payments through the adoption of modern, electronic processes. Through B2B payments modernization, businesses can achieve straight-through processing, where they receive and process transactions from the invoice through payment, remittance and reconciliation with little to no manual intervention.
This modernization will lead to many benefits – including more efficient payments processes – for businesses of all types. Through increased efficiency, businesses can expect better cash management, lower costs, error reduction, risk mitigation, and the increased transparency that comes with an electronic, automated process.
To learn more about the many ways that businesses benefit, watch the latest video in the three-part series on B2B payments modernization.
To catalyze transformation in B2B payments, the Federal Reserve and Business Payments Coalition (BPC) have organized two work groups dedicated to advancing transformation in the B2B exchange of e-invoicing and remittance information. The E-invoice Exchange Market Pilot is working to stand up an operational pilot exchange framework to enable businesses to exchange e-invoices. The Remittance Delivery Assessment Work Group will assess whether a similar exchange framework can facilitate electronic delivery of remittance information across all payment types. The outcomes of these work groups will be essential to progressing B2B payments toward modernized solutions and yielding benefits to businesses of all kinds.