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For decades, the wire transfer was the gold standard for moving large sums quickly. Today, it’s starting to look like the fax machine of business payments.

For most domestic business payments, instant payments are now the better choice. They settle in seconds, run 24/7, and usually cost far less than a wire. Wires still have a role, especially for international payments and very large transfers, but for paying a US supplier or getting paid by a US customer, instant payments win on speed, cost and convenience. Here’s how the two compare, and when to use each.

What’s wrong with domestic wire transfers?

Wires aren’t broken. They’re just built for a different era, and they show it in three ways.

They cost more than they should. The typical outgoing domestic wire costs $20 to $40, with a median of $25, according to NerdWallet’s survey of bank fees. Branch wires can cost even more. If your business sends a few wires a week, that’s thousands of dollars a year in fees alone.

They only move during banking hours. Wires run on the Fedwire Funds Service, which processes payments on business days within set operating hours. Miss the cut-off on a Friday afternoon and your payment waits until Monday.

They take manual effort. Sending a wire often means logging into your bank, keying in account and routing details, and getting someone to approve it. Then someone has to record it in your accounting software. Every manual step adds time and room for costly typos.

None of this has stopped wires from being popular. Fedwire still handled more than 217 million transfers worth about $1.15 quadrillion in 2025 (Federal Reserve Financial Services). But a growing share of everyday business payments no longer needs one.

How do instant payments work?

Instant payments are bank-to-bank transfers that clear and settle within seconds, any time of day. In the US, they run on two networks.

The FedNow Service, launched by the Federal Reserve in July 2023, settled 6.4 million payments worth $370.9 billion in the third quarter of 2026 alone (Federal Reserve Financial Services). The RTP Network, run by The Clearing House, set a record of 2.27 million transactions worth $8.62 billion on a single day in May 2026, and handles payments up to $10 million each (The Clearing House).

Both networks run 24/7/365, including weekends and holidays. Funds are available to the recipient immediately, and payments are final once sent. For a full explainer, read our guide on what real-time payments are.

Instant payments vs wire transfers: what’s the difference for your business?

Speed and availability

A wire can arrive the same day, as long as you send it during banking hours. An instant payment arrives in seconds, whether it’s Tuesday morning or Sunday night. That makes it far easier to pay a supplier the moment a bill is due, or get paid the moment a customer approves an invoice.

Cost

Instant payments typically cost a fraction of a $25 wire, especially on mid-sized invoices. With Forwardly, there are no monthly fees. You only pay per transaction, and bank payments between businesses on the Forwardly Network are free.

Cash flow

When money arrives in seconds instead of days, cash flow becomes predictable. You spend less time chasing payments and more time planning. Slow payments are a real drag on small businesses, and we break down what they cost in the hidden cost of delayed payments.

Supplier relationships

Paying vendors on time, every time, builds trust. With instant payments and Bill Auto Payments, bills are paid exactly on their due date, even if that falls on a weekend.

Admin and reconciliation

Wires usually need manual recording. Payments made through Forwardly sync automatically with your accounting software through 2-way sync with QBO, Xero, NetSuite, Sage and MS Dynamics. No double entry, no matching deposits by hand.

When should you still use a wire transfer?

Wires still make sense in a few situations:

• International payments. FedNow and RTP are US-only networks, so wires remain the go-to for sending money overseas.

• Very large one-off transfers. Real estate closings and other transactions above instant payment limits still typically go by wire.

• When the recipient requires it. Some counterparties, such as title companies or certain lenders, specifically ask for a wire.

For almost everything else, especially regular payments to US suppliers and customers, instant payments are faster and cheaper. Not sure which method fits? Our guide to ACH vs wire transfers covers the slower but cheaper bank options too.

Getting started with instant payments

You don’t need to open a new bank account or pre-fund a wallet. Forwardly connects to the bank you already have and sends and receives instant payments through both FedNow and RTP, so money lands in about 60 seconds. If the other bank isn’t on an instant network yet, you can still pay or get paid by ACH.

Keep wires for the jobs they’re good at. For everything else, there’s a faster way. Start your free Forwardly trial and send your first instant payment today.