Record Growth in ACH Network

Nacha, the organization that governs the ACH Network, has recently released a report chronicling trends in the use of ACH in 2020.

26.8 billion payments were made over the ACH Network in 2020, which is an increase of 8.2% over 2019, and the value of those payments, $61.9 trillion, increased by 10.8%, according to Nacha’s report.

This growth rate is the highest it’s been since 2007, and it is due in part to the emergence of the novel coronavirus, which pushed a lot of in-person paper-based solutions to digital platforms. The ACH Network stepped in to help deliver payments, like the first and second rounds of federal stimulus, faster and more accurately.

Here are some other insights on the ACH Network in 2020.

Core ACH Network Categories Grew by More Than 10%

Nacha reported that “several ACH payment categories grew in 2020 by more than 10%”:

  • Direct Deposit of salaries and wages, benefits and assistance payments, and other disbursements from organizations to individuals increased 12%
  • Internet-initiated consumer payments for bills, account transfers, and other payments increased 15%
  • Person-to-person payments and transfers increased 42%
  • Business-to-business payments for supply chain, vendor payments, bills, and other transfers increased by almost 11%

The ease and safety of moving these different categories of ACH payment will likely continue to draw more and more people and businesses to the network.

Same Day ACH Adoption is Also Rising

The total value of Same Day ACH payments has increased by 86% from just one year earlier, with payment volume rising 39%. Due to both the restricted access to banking institutions and payment platforms, coupled with the ever-increasing national demand for faster and more efficient payment methods, Same Day ACH is a popular method that will only gain in popularity, even post-pandemic.

Digital platforms and solutions that were forged in the fires of this unprecedented time are not going away, because they offer more convenience to their users than has ever been seen on such a wide scale. It’s almost as if the country got a technology facelift.

“The expansion of Same Day ACH continues on March 19, 2021,” says Nacha President and CEO Jane Larimer. “The ACH Network will extend the hours for submitting Same Day ACH payments, and banks and credit unions will provide same day funds availability for these new Same Day ACH payments.”

Volume Growth Breakdown of ACH Network in 2020

Along with its report, Nacha also created a detailed infographic that breaks down the growth of the ACH Network in 2020 even further, and it includes some eye-opening insights.

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