Q2 Announces New Solution to Help Financial Institutions Automate Instant Payments

Rhea-AI Summary

Q2 Holdings, Inc. has introduced the Q2 Instant Payments Manager, a cutting-edge solution enabling banks and credit unions to streamline instant payment workflows using Clearing House RTP® and Federal Reserve FedNow^SM rails. This solution is among the first B2B payment systems to support a full set of instant payment messages, enhancing the processing of B2B payments, particularly in addressing partial payments and invoicing issues faced by businesses.

The launch aims to modernize B2B payment flows and improve operational efficiency in commercial banking, with a focus on boosting operating account deposits. According to the 2022 AFP Digital Payments Survey, a significant portion of B2B payments in the U.S. still rely on checks, showcasing the need for improved systems like the Q2 Instant Payments Manager.

Positive

• Introduction of Q2 Instant Payments Manager enhances B2B payment workflows.
• Supports full instant payment message set, improving invoice data integration.
• Addresses current challenges in B2B payments, offering competitive advantages.
• Part of the comprehensive Q2 Catalyst suite for commercial banking solutions.

Negative

• None.

Q2 Instant Payment Manager enables banks and credit unions to leverage both Clearing House RTP® and Federal Reserve FedNow^SM instant payment rails

AUSTIN, Texas--(BUSINESS WIRE)-- 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 FedNow^SM 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.

To learn more:

• “Instant Payments: Just Another Payment Rail or an Innovation Accelerant?” Blog: Click here to read
• 2023 Q2 State of Commercial Banking Report: Click here to download
• Q2 Catalyst Website: https://www.q2.com/commercial
• Nacha 2023 Smarter Faster Payments Annual Conference: Visit us at Booth #437, Las Vegas, NV, April 16 – 19. Learn more about the event here.

Q2 Sessions at Nacha:

• “On Track, On Time, and Onboard: Improve Your Business Onboarding With Digital” – Sunday, April 16 from 3:10 – 4:00 p.m. PST
• Demo Presentation: Modernizing B2B Payments with the Instant Payment Rails – Monday, April 17 from 9:20 – 9:50 a.m. PST
• “An Unbeatable Pair: FIs and Fintechs Play a Winning Hand with Consumers” – Monday, April 17 from 4:40 – 5:30 p.m. PST
• “Big Opportunities in Micro and Small Business Banking” – Monday, April 17 from 2:50 – 3:40 p.m. PST

About Q2 Holdings, Inc.

Q2 is a leading provider of digital banking and lending solutions to banks, credit unions, alternative finance, and fintech companies in the U.S. and internationally. Q2 enables its financial institutions and fintech companies to provide comprehensive, secure, data-driven digital client engagement solutions – from consumers to small businesses and corporate clients. Headquartered in Austin, Texas, Q2 has offices throughout the world and is publicly traded on the NYSE under the stock symbol QTWO. To learn more, please visit Q2.com. Follow us on LinkedIn and Twitter to stay up-to-date.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230417005540/en/

Carly Baker

Q2 Holdings, Inc.

+1 210-391-1706

Carly.baker@q2.com

Source: Q2 Holdings, Inc.

FAQ

What is the Q2 Instant Payments Manager released by QTWO?

The Q2 Instant Payments Manager is a new solution for banks and credit unions to manage instant payment workflows using Clearing House RTP® and Federal Reserve FedNow^SM rails.

How does Q2 Instant Payments Manager improve B2B payments?

The solution improves B2B payments by supporting a full set of instant payment messages, including invoice data integration, thus modernizing payment processes.

What competitive advantages does QTWO claim with this new payment solution?

QTWO claims that the Q2 Instant Payments Manager will provide a competitive advantage by addressing B2B payment challenges and improving operational efficiencies for banks and credit unions.

When was the Q2 Instant Payments Manager announced?

The Q2 Instant Payments Manager was announced in a press release dated April 17, 2023.