The allure of speed plays a role in changing use patterns for all kinds of payment methods, familiar and new. Automated clearing house (ACH) transactions and person-to-person (P2P) payments via depository institution websites are two payment types for which recent growth rates show the importance of speed.
Data from the Federal Reserve Payment Study
(FRPS) finds that same-day ACH debit transfers grew 39 percent per year by value from 2018 to 2021. Same-day ACH credit transfers also grew by double digits per year—21 percent by value. In comparison, non-same-day ACH transactions by value grew by single digits per year over the period.
This rapid growth occurred on a small base, so same-day transfers have lots of room to grow. Same-day transfers are a small share of all ACH transfers, 4 percent of credits and debits by value (see chart below). As these charts show, it's important to look at both growth rates and levels to get the whole story on growth in ways to pay.
P2P payments via depository institution website or app are changing expectations about the timing of funds availability. These grew 51 percent per year by number from 2018 to 2021. In 2021, three-quarters of these P2P payments by number were made immediately available, or in 30 or fewer minutes, to recipients.
The March data release provides comprehensive estimates of ACH, check, wire, and alternative payment methods based on data submitted by depository financial institutions. In addition to detail on speed of payments, the release provides breakdowns by business and consumer payers and domestic and cross border payments. You can review the data here
By Claire Greene, center director, Atlanta Fed Payments Forum