PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Same-Day ACH, Bill Pay: Who Wins?

By Sarah Grotta
August 21, 2017
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Mobile payments with smartphone. Payment terminal concept. Online transactions, paypass and NFC. Cartoon flat style vector illustration.

Mobile payments with smartphone. Near field communication payment terminal concept. Online transactions, paypass and NFC. Cartoon flat style vector illustration.

 In September, the next phase of same day ACH will take effect, requiring all ACH financial institutions, to receive not just credits but also ACH debits. One article in CU Times discusses the relative merits of same day ACH debits for bill pay:

Same-day ACH’s three-phase rollout may be speeding up payments in the financial ecosystem, but the jury’s still out on whether some of that progress will come at the expense of one well-known credit union product: Bill pay. Some say same-day ACH attracts mostly business users and can peacefully co-exist with bill pay; others wonder whether same-day ACH’s similar end game (quick, cheap funds movement) will water down bill pay’s reach with members.

Some of the thoughts discussed includes the opportunity for credit unions and other financial institutions to offer same day money movement for consumers very inexpensively to meet deadlines for bill payments. Unfortunately, I don’t believe that financial institutions are in much of a position to impact the habits bill paying consumers. Most bills are done directly through the biller through recurring transactions or directly on their online sites or mobile apps. Industry data tracks that the vast majority of bills are paid directly and not through a financial institutions product:

Online payments made on biller sites grew from 62% in 2010 to 73% in 2016; bank bill pay, on the other hand, shrank from 38% in 2010 to 27% in 2016, the study said.

The better opportunity may exist by reaching out to billers with same day ACH origination services.

Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group

Read the full story here

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: ACHBill Pay

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Banking-as-a-service BaaS

    Remodeling Main Street: How Community Banks Can Leverage the Banking-as-a-Service Paradigm

    June 12, 2025
    How Employee Performance Enhances the Customer Experience

    Three Strategies to Maximize Loyalty in the AI-Driven World 

    June 11, 2025
    PFM tools

    How FIs Are Cutting Through Subscription Clutter with PFM Tools

    June 10, 2025
    child identity theft

    Stranger Danger: Protecting Your Children from Identity Theft

    June 9, 2025
    agentic commerce

    The Agentic Advent: How the Next Iteration of AI is Shaping Commerce

    June 6, 2025
    payments hub, digital banking

    All in One: How a Payments Hub Eliminates the Pain Points

    June 5, 2025
    Vertical SaaS

    From Underdogs to Industry Leaders: How Vertical SaaS Powers Mid-Sized Firms

    June 4, 2025
    credit card surcharging

    A Perfectly Understandable Bad Idea: Why Merchants Should Reconsider Surcharging

    June 3, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result