The payments landscape for community banks is changing rapidly as traditional payments converge with new instant payment systems and emerging cryptocurrencies. It is critical for Community Banks to maintain awareness of developments in the payments space to assess new opportunities, mitigate risks, and ensure that their payment strategy aligns with overall business plans.
ACH Network volume soared in the first quarter—increasing by 11.2 percent to 7.1 billion payments in compared to the first quarter of 2020 and setting two new records, Nacha reported.
Same Day ACH volume, meanwhile, increased 88 percent in the first quarter with a corresponding value of $187.6 billion—a 133 percent increase over the first quarter of 2020. The number of Same Day ACH payments also passed the 1 billion mark with total transactions since inception valued at $1 trillion.
Details: The first record was set in February, when ACH volume averaged more than 118 million payments per day—the ACH Network’s highest daily average for a month. The second milestone was in March, when ACH volume hit 2.7 billion payments, the largest monthly volume in ACH Network history. This included approximately 110 million Economic Impact Payments by direct deposit from the federal government.
More: Nacha recently approved an increase of the Same Day ACH dollar threshold from $100,000 to $1 million, effective March 18, 2022.