NACHA’s Same Day ACH service saw very strong numbers in its first three months of operation, particularly in the business-to-business (B2B) space. The electronic payments association said Wednesday that its faster payments initiative generated more than 13 million transactions totaling nearly $17 billion from its September 23 launch through the end of 2016.
Janet Estep, president and CEO of NACHA, said in a statement that the same day service has seen uptake by businesses, consumers and financial institutions alike. “We are encouraged by its performance thus far, and look forward to seeing Same Day ACH continue to provide value for its users in 2017,” she said.
Slightly more than half of Same Day ACH volume (52 percent) was comprised of direct deposit via ACH transactions. Those 6.8 million transactions, which included emergency payroll and pension payments, totaled $5.9 billion.
Same Day ACH was especially a big hit with B2B payments. Fully 32 percent (4.1 million transactions) of Same Day ACH volume was B2B transactions, a total of $8.8 billion. These numbers more or less confirm what was said during sessions at Sibos and Payments International last year—that speed of transactions is becoming just as important to corporate treasury as security.
Indeed, as Magnus Carlsson, AFP’s manager of treasury and payments pointed out, these numbers show that there is a clear appetite for faster payments in general. “Because Same Day ACH is optional—not a requirement—the numbers show that faster payments fill a real need, something that was also highlighted in the 2016 AFP Electronic Payments Survey,” he said.
But Same Day ACH still has room to grow; during a call with members AFP’s Treasury Advisory Group (TAG) earlier this month, multiple corporate practitioners from a number of different industries revealed that they are not using the service. This is likely due to the $25,000 limit NACHA placed on Same Day ACH transactions—a move that was undoubtedly unpopular among treasurers who were hoping for a faster means to send large sums of money.
But should NACHA decide to raise that limit, B2B payments via Same Day ACH could skyrocket—if these numbers are any indication.