Fed Finds B2B Payments Went Digital, but Paperwork Didn’t
Federal Reserve reveals B2B payments digitized but data integration lags.
In brief
Federal Reserve reveals B2B payments digitized but data integration lags. B2B payments have shifted to electronic methods but businesses still struggle to connect payments with invoices and accounting records. Originally reported by Pymnts.
B2B Payments Digitized
B2B payments have gone digital, but the work around them hasn’t.
“B2B payments have gone digital, but the work around them hasn’t”
ACH Adoption Surges
ACH adoption has surged, and check volumes have declined.
Check Transactions Decline
B2B check payments fell from 4.6 billion in 2015 to 2.7 billion in 2024.
Check Value Stays Stable
Their value barely moved, from $15.4 trillion to $15 trillion.
Interoperability Challenge
Fragmented data standards, legacy ERP systems and incompatible supplier portals prevent true end-to-end automation.
Payment Data Separation
A supplier can receive an electronic payment in seconds but spend hours determining which invoices it satisfies.
Remittance Standards Clash
Wire and instant payments use ISO 20022 messaging, card payments use ISO 8583, and ACH relies on legacy ANSI ASC X12 EDI formats.
The headline
B2B payments have shifted to electronic methods but businesses still struggle to connect payments with invoices and accounting records.
