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THE CHANGING PAYMENTS LANDSCAPE

Three broad trends have shaped the corporate payments landscape over the past 20 years. First, there has been a steady reduction in the use of checks. Figures from the 2025 AFP Digital Payments Survey show the percentage of organizations’ B2B payments made by check has fallen from 81% in 2004 to 33% in 2022 and 26% in 2025. The reasons for the decline vary; however, two of the most prominent are the cost of check processing and the risk of fraud.

Second, investment in digital payment rails has continued. Changes range from the adoption of instant payment rails around the world (e.g., RTP and FedNow in the U.S.), the acceleration of ACH settlement processes (e.g., Same-Day ACH in the U.S.), the development of more efficient cross-border payment processes, helped by innovations such as SWIFT’s UETR (Unique End-toend Transaction Reference), and the emergence of new cryptocurrencies and central bank digital currencies (CBDCs).

Third, innovation in treasury technology is improving access to payment information and enabling real-time transaction initiation. APIs and ERP connectors are accelerating data flows between banks and companies, making this shift possible. Operating in real time also changes the risks associated with initiating and approving payments, often requiring an adjustment to treasury processes. These advancements are further supported by new messaging standards, notably ISO 20022, which use a structured format to enable the transmission of more data with each payment.

The effect has been a broader range of choices for treasury practitioners when designing payments strategies and initiating payments. Practitioners need to determine whether to set up different types of payments (e.g., instant payments) and when to use them. There are a number of variables, including:

  • Meeting the cut-off time for the required settlement date. Fundamentally, any outgoing payment must reach the payee’s account by the target date. If a file error occurs, a same-day payment may be required, with the choice of method determined by the available rails.
  • Reachability. Treasury practitioners also need to ensure a payment can reach the payee’s bank account. While ACH and wire payments can generally reach any U.S.-based demand deposit account (DDA), RTP can reach 74% and FedNow can reach 46% of DDAs, respectively, and these figures are increasing.
  • Cost. Any decision based on cost should include both the fees charged by the bank and the internal processing costs. Instant payments are generally cheaper than wires. Automated payments are generally cheaper than those requiring manual intervention.
  • Working capital benefits. Irrevocable payments (e.g., instant payments and wires) provide working capital benefits by giving treasury practitioners greater certainty over their cash position. Payments that can be reversed (e.g., card payments) introduce uncertainty, requiring treasurers to hold additional cash.
  • Business benefits. Companies can gain a competitive advantage by paying suppliers faster and enhance their reputation by making customer payments (e.g., insurance payouts) more quickly.
  • Payroll benefits. Companies can use instant payments, rather than checks or cash, to pay casual weekend staff or to provide a final day’s salary to employees when required.
  • Despite these advances, treasury practitioners must still manage payment-related risks. Organizations need to remain alert to the ever-changing threat of fraud and maintain appropriate controls over supplier and customer data to mitigate both fraud and reputational risk. They must also be able to make payments accurately and cost-effectively, in a way that meets their operational requirements.

“ The best payments program reduces the risks to the finances and the reputation of the company.”

– LEE-ANN PERKINS, Head of Treasury Ankura Consulting Group