Real-time payments are gaining popularity globally, and compared to the rest of the world, the U.S. has lagged behind in rapid B2B payments technology. But that’s about to change with FedNow debuting this summer.

FedNow will enable financial institutions of all sizes nationwide to offer secure and speedy payments within seconds. This means that businesses will have the ability to send and receive invoice payments instantly, 24/7 and 365 days a year regardless of bank holidays. This will have significant implications for all payments sectors.

Mike Kresse, head of B2B and Money Movement at FIS, recently joined Brian Riley, co-head of Payments at Javelin Strategy & Research, to discuss how real-time payments will play out in the B2B sector, and how the U.S. rollout will differ from how it played in other countries.

Listen to the podcast here:

The adoption of real-time payments in the U.S. will likely focus on specific industries and use cases. One area ripe for development is the automation of back-office processes such as collections management and account receivable and payable, as companies seek to streamline operations through technology.

Businesses, especially those moving online, are looking to streamline payment processes and increase efficiency, with P2P payments apps serving as a model for this shift.

Looking ahead, key developments include increased interoperability and continued push for immediacy in B2B payments. Over the decade, costs associated with real-time payments are expected to decline as systems become more interconnected.

FedNow will likely drive the proliferation of real-time payments in the U.S. and accelerate the B2B payments transformation journeys of many U.S. players.