Last year we published a post about the impact of the 2020 pandemic on accounts payable, in particular, the rise in digital B2B payment methods. As with many of the new trends we saw during the pandemic, this one didn’t go away.
According to Nacha, the organization that oversees the ACH network, in the first half of 2023 ACH transactions have grown in both volume (13.7% increase) and value (51.7% increase).
The huge increase in transactional value is due mostly to the fact that Nacha increased the same day ACH limit to $1 million dollars, opening a floodgate of bigger transactions over the last year.
“Many businesses and organizations are already aware of the value proposition that ACH payments provide. For others, the growing instances of check fraud should be ample reason to make the switch away from paper in making and receiving B2B payments,” said Jane Larimer, Nacha President and CEO, in a recent statement.
While it’s true that ACH and other digital payment methods have been gradually replacing B2B paper check payments for years, the pandemic accelerated the trend dramatically.
With an increased need for remote capabilities, ACH payments saw rapid adoption during the strictest months of quarantine.
Read our original article on this topic here, “ACH Boom Continues - 1.4 Billion ACH Vendor Payments in Q1 2022.”
B2B Payments for Dynamics GP and BC