ACH payments have shown accelerating growth over the last several years, according to a new Federal Reserve study, confirming recent findings by Nacha.
“Growth in network ACH payments has continued to accelerate by number and value since 2012,” according to the “Federal Reserve Payments Study: 2018 Annual Supplement,” released Dec. 20.
“Network ACH payments increased 5.7 percent by number from 2016 to 2017, up from an increase of 5.3 percent from 2015 to 2016, which, itself, was up from an increase of 4.9 percent per year from 2012 to 2015,” said the report.
“Likewise, network ACH payments increased 6.9 percent by value from 2016 to 2017, up from an increase of 5.1 percent from 2015 to 2016, which, itself, was up from an increase of 4.1 percent per year from 2012 to 2015,” the report added.
In fact, the report noted that “among the three periods discussed here, 2012 to 2015, 2015 to 2016, and 2016 to 2017, ACH credit transfers showed the highest annual growth rate of 7.5 percent by value from 2016 to 2017. ACH debit transfers experienced the biggest increase in annual growth rates by value, reaching 5.9 percent from 2016 to 2017 compared with just 1.4 percent per year from 2012 to 2015.”
The Fed noted that the data on ACH credit and debit transfers in its report were based on reports compiled by the ACH Operators and, therefore, only cover payments on the ACH Network.
“The ACH Network is thriving,” said Michael Herd, Nacha senior vice president, ACH Network administration. “The ACH Network is on pace to add more than 1 billion new payments for the fourth consecutive year.”
At the same time, the report found “an accelerated decline” in the number of large-institution check payments, falling 4.8 percent from 2016 to 2017. However, it noted that large-institution check payments increased 7.5 percent by value in the same time frame.
Among the report’s other highlights:
- Between 2012 and 2015, ATM withdrawals by number fell, based on a survey of the largest depository institutions. The decline slowed significantly from 2015 to 2016, but increased from 2016 to 2017. The Fed said the drops “may be connected to increases in card payments.”
- Card payments increased 10.1 percent by number to 123.5 billion payments, and 8.4 percent by value to $6.48 trillion, from 2016 to 2017.
The complete “Federal Reserve Payments Study: 2018 Annual Supplement” is available here.