Chart of The Week: Drivers of B2B Use of Faster Payments

Businesses are interested in automating accounting and reconciliation processes for large B2B payments using faster payment features like automatable requests for payment messages. They also want faster/instant payments for just-in-time transactions and the ability to include detailed remittance information with payments. Most surveyed businesses see benefits in faster payments, but the size of the business affects their adoption decisions.

Source: Federal Reserve Payments Insights Brief: Changing environment places premium on payment speed, choice and control

Micro and small businesses are mainly concerned about costs, with 78% of micro-businesses and 54% of small businesses unlikely to adopt faster payments if they're more expensive than their current bank fees. These businesses are generally content with their current payment systems. Larger businesses are more focused on efficiency gains, particularly in reconciliation processes and 24/7 service availability. They also emphasize the advantages of data access and using standardized global formats.

Despite considering potential benefits and use cases against concerns like cost, security, and network reach, the majority of surveyed businesses (90%) plan to use faster payments within three years. A third of businesses are already making preparations for adopting faster payment methods, which could accelerate adoption in the coming years. This trend could be driven by financial institutions and providers offering additional services through faster payment rails.