Real-Time Payments (RTP) are transforming how organizations handle B2B transactions by enabling instant, secure, and data-rich fund transfers—a major upgrade from traditional ACH or check-based methods.
How RTP Works in the B2B Payment Environment
- Instant Settlement: Payments are cleared and settled within seconds, directly to the supplier’s bank account—even on weekends or holidays.
- 24/7 Availability: No cut-off times or batch processing delays. Manufacturers can pay vendors anytime, improving supply chain agility.
- Rich Remittance Data: RTP supports detailed invoice and PO-level data, streamlining reconciliation and reducing manual errors.
- Irrevocable Transactions: Once sent, RTPs can’t be reversed—reducing disputes and improving trust between buyers and suppliers.
Key Use Cases
| Use Case | RTP Advantage |
| Just-in-Time Inventory | Pay suppliers instantly to release critical parts |
| Emergency Procurement | Rapid payments for urgent repairs or shortages |
| Milestone-Based Projects | Trigger payments upon delivery or inspection |
| Vendor Retention | Faster payments improve supplier satisfaction |
| Global Operations | RTP supports multi-location, multi-currency flows |
Financial & Operational Benefits
- Improved Cash Flow Visibility: Real-time tracking of outgoing payments helps optimize working capital.
- Reduced Processing Costs: Eliminates check handling, wire fees, and manual AP labor.
- Enhanced Supplier Relationships: Vendors appreciate immediate payment, which can lead to better terms and priority service.
- ERP Integration: RTP can be embedded into manufacturing ERP systems for automated payment workflows.
A Traditional Accounts Payable (AP) Workflow
- Invoice Receipt
Supplier sends invoice (paper, email, EDI) - Invoice Validation
Match invoice to PO and goods received (3-way match) - Approval Routing
Finance or operations team reviews and approves - Payment Scheduling
Payment is scheduled via check, ACH, or wire - Payment Execution
Funds are transferred—often with delays - Reconciliation
Match payment to invoice in ERP system
AP Workflow with Real-Time Payments
| Step | RTP Enhancement |
| Invoice Receipt | No change—RTP integrates with existing intake channels |
| Validation & Matching | Same 3-way match, but faster approval triggers immediate payment |
| Approval Routing | Digital workflows enable instant routing and mobile approvals |
| Payment Execution | RTP sends funds instantly—no batch delays, no cut-off times |
| Remittance Data | Rich data sent with payment for auto-reconciliation |
| Reconciliation | ERP auto-matches payment and invoice in real time |
How RTP Speeds Up AP Workflow
- No batch delays: Traditional AP relies on scheduled payment runs; RTP enables continuous, on-demand execution.
- No cut-off times: ACH and wires are limited by banking hours; RTP works nights, weekends, and holidays.
- Instant reconciliation: Rich remittance data allows ERP systems to auto-match payments to invoices in real time.
- Reduced exception handling: Fewer failed payments and faster error resolution mean less AP team intervention.
Impact in to B2B in Manufacturing
For manufacturers managing high-volume supplier payments, RTP can:
- Cut payment cycle time by 1–3 days
- Enable just-in-time inventory release
- Improve cash flow visibility and supplier trust
B2B Payment Benefits
- Just-in-Time Inventory: Pay instantly to release critical components
- Early Payment Discounts: Capture discounts with faster approvals and settlement
- Reduced Production Delays: Avoid supplier hold-ups due to late payments
- Improved DPO Strategy: Schedule payments precisely without harming supplier DSO
- Stronger Supplier Relationships: Instant, irrevocable payments build trust
Real-Time Payments (RTP) can dramatically accelerate the Accounts Payable (AP) process—cutting settlement time from days to seconds.
