Waiting days for a payment to clear is a cash flow problem. Real-time payments fix it by moving money between bank accounts in seconds, any time of day. Here’s what they are, how they work, and why more small businesses are making the switch.
What are real-time payments?
Real-time payments are bank-to-bank transfers that settle instantly, usually within seconds. They run 24/7/365, including weekends and holidays. For a deeper dive, read our complete guide to real-time payments.
That’s a big change from traditional B2B payment methods. Checks, wire transfers and ACH payments can take hours or even days to settle. With real-time payments, the money is available as soon as it’s sent.
Why are businesses demanding faster B2B payments?
ACH and checks still carry much of the load. In 2024, ACH made up 41% of B2B payments by number and checks 13%, according to the Federal Reserve Payments Study (Cleveland Fed). Both take days to settle.
Checks are slow and costly to process. Even so-called “instant ACH” transfers don’t guarantee same-day payment, let alone a truly instant one.
Slow payments hurt. 59% of US small businesses have invoices overdue by 30 days or more, and 39% say a single late payment made it hard to cover payroll or bills in the past year (QuickBooks). We break down what that really costs in the hidden cost of delayed payments.
For a small business owner, the ability to send and receive payments instantly can make a real difference to day-to-day operations.
How real-time payments differ from traditional methods
Real-time payments settle within seconds and are available 24/7/365. Traditional methods work on banking hours and settlement cycles, which means waiting. See how they stack up in faster payment tech vs wire transfers.
Cost is another difference. A 2.9% card processing fee on a $1,000 payment costs $29. Instant bank payments usually cost a fraction of that, and you skip the days-long wait for card settlement.
What powers the real-time payment process?
Real-time payments run on digital infrastructure known as “payment rails.” In the US, there are two.
The RTP Network was launched by The Clearing House in 2017. It’s busier than ever, hitting a record 2.27 million transactions worth $8.62 billion on a single day in May 2026. It handles payments up to $10 million each (The Clearing House).
The Federal Reserve’s FedNow Service joined it in July 2023. It’s now live at more than 1,800 banks and credit unions, and settled 8.4 million payments worth $853.4 billion in 2025 (Digital Transactions). Learn more about the benefits of FedNow for small businesses.
Together, these two networks let money move between accounts in seconds, any time of day.
Benefits of modern payment solutions for small businesses
Instant payments are now approaching $500 billion in value per quarter, with more than 1.5 million transactions a day (The Clearing House). Businesses are switching because the benefits are hard to ignore.
Faster cash flow
Real-time payments put money in your account immediately. That means funds are ready for payroll, suppliers or new opportunities, not stuck in transit. It’s one of the quickest ways to improve how accounts receivable affects your cash flow.
Improved efficiency
Instant payments cut down on admin. There’s no chasing payment status, no waiting on checks and no guessing when funds will clear. That leaves more time for growing the business.
Better vendor relationships
Paying vendors on time, every time, builds trust. Real-time payments let you pay exactly when a bill is due, even on a weekend, so suppliers aren’t left waiting. With Auto Payments, bills can even pay themselves on their due date.
Improved financial control
With real-time payments, you always know where your money is. Instant confirmation and tracking give you a clearer picture of your cash position, so you can make better decisions.
Getting started with real-time payments
So, how can small businesses start using real-time payments? Look for a payment platform like Forwardly. It sends and receives instant payments through the RTP Network and the FedNow Service, so money lands in about 60 seconds.
Forwardly works with the bank you already have, and syncs both ways with QBO, Xero, NetSuite, Sage and MS Dynamics. Every payment reconciles automatically, on both the payables and receivables side.
There are no monthly fees; you only pay per transaction, based on how fast you want the money to move. Need it now? Go instant. Not urgent? Standard ACH costs less.
The future of B2B payments is real-time, and there’s no reason to wait for it. Start your free Forwardly trial and see what instant payments can do for your cash flow.
By:
Maninder Sidhu
Published
