In the payments arena, checks account for almost 50% of payments (down from 63% in 2014); ACH 32% (up from 22% in 2014), cards 11% (up from 8% in 2014), and cash and wire 8% (up from 7% in 2014).
According to a new survey conducted by Credit Research Foundation (CRF) in partnership with NACHA-The Electronic Payments Association, credit and account receivables professionals anticipate that ACH transactions will surpass checks as the leading form of payment received from business customers by 2020.
By 2020, respondents anticipate that ACH will account for 45% of payments, checks 34%, cards 12.5%, and cash and wire 8.5%.
In addition to benchmarking current and future payment trends, the survey revealed reasons for the changes in payments use. According to the survey, internal factors (29%); technology improvements (28%); customer push (23%); cost (13%); and card/bank push (7%) drove increases and decreases in payment use. Despite the actual and anticipated growth of ACH payments, businesses still face some issues with respect to ACH adoption.
Overwhelmingly, credit and account receivables professionals want to be paid via ACH. Almost 80% cite ACH as their most preferred method of receiving payments. But barriers to receiving ACH payments still exist. Forty-five percent of credit and receivables professionals indicate that they have some customers that are not capable of sending ACH payments. Another 34% say that their customers can send ACH payments, but do not properly send remittance with the payment. And another 21% suggest that their organizations do not have the proper systems and/or resources to effectively use ACH.
In 2016, there were 25 billion ACH payments made that moved $43 trillion.