Federal Reserve Study Highlights Business Payment Changes
Wednesday, July 5, 2017
Businesses are increasingly replacing check payments with other noncash payments, according to the Federal Reserve’s newly released Payment Study. The report looks at 2015 consumer and business payment trends.
Businesses wrote 24.1 checks per month, on average, in 2015 compared with 66.0 per month in 2000. During the same period, ACH transfers by businesses rose to 29.8 per month, on average, from 13.4. The value of business ACH transfers and business checks written increased substantially, reaching $148.5 trillion in 2015—more than double the total value of business and consumer ACH transfers and checks written in 2000.
The aggregate ranking in 2015 of the number of noncash payments by payment type differed substantially for businesses. ACH credit transfers were the most popular, followed by checks, general-purpose credit cards, and non-prepaid debit cards.
Growth in selected alternative payment initiation methods and services, such as payments initiated via a mobile device, payments made through specialized services for person-to-person payments, and payments using online payment authentication methods, was strong from 2012 to 2015. Compared to the total number and value of noncash payments, however, the total number and value of payments using these methods remains low.
This data comes on the heels of a recent NACHA report that ACH transactions will top checks as the top form of B2B payment by 2020.