Q2 Holdings, Inc. (NYSE:QTWO), a leading provider of digital transformation solutions for banking and lending, today announced Q2 Instant Payments Manager, a new solution designed to help financial institutions manage instant payment workflows from end-to-end with the new Clearing House RTP® and Federal Reserve FedNowSM instant payment rails.
The new payment solution will be among the first business-to-business (B2B) payment solutions available in the market to support the full instant payment message set, including Request for Payment, Request for Information, Credit Transfer and Receipt Confirmation messages.
“Q2 Instant Payments Manager solves the challenges many businesses face around partial B2B payments and exchanging invoice data between billers and payers,” said Dallas Wells, SVP of Product Management, Q2. “The new solution will modernize B2B payment flows and provide a competitive advantage for banks and credit unions striving for operating account deposits in a crowded commercial banking market.”
According to the 2022 AFP Digital Payments Survey, 33 percent of B2B payments in the U.S. are still made via check, and for those made via ACH, 78 percent of the time, invoice data is still sent through email or standard mail. Q2 Instant Payments Manager will improve the way billers and payers process B2B payments by providing business customers with the ability to include invoice data within instant payment messages.
“Historically, the B2B payment workflow supported by financial institutions begins with the payer, who originates the payment to the biller,” said Wells. “With Q2 Instant Payments Manager, the payment workflow can begin with the biller or payer and embeds the invoice data within the workflow, making both accounts receivable processing easier for the biller and accounts payable processing easier for the payer.”
Q2 Instant Payments Manager is a part of Q2 Catalyst, a suite of best-in-class commercial banking solutions and supports Q2’s strategic approach to innovation. The solution will enable financial institutions to help businesses improve their accounts receivable and payable processes by reducing the times to post and reconcile B2B payments.