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SameDayACH is ready for its debut at the end of the week, and for some, its launch signals the next step for the payments industry to become faster and more digital. In B2B payments, those characteristics could have a significant impact on supplier payments and other B2B payment habits.
NACHA released new statistics late last week on growth of ACH transaction volume in the U.S. According to the firm, B2B transactions were a key driver of ACH transaction growth in the third quarter of the year, leading NACHA Chief Operating Officer Jane Larimer to describe the ACH Network as “thriving.”. NACHA said 43.2
B2B payments’ innovation trajectory continues to accelerate as more end-point solutions emerge to improve the vast number of friction points in the industry. Achieving this goal in improving B2B payments means moving beyond the transaction itself. It’s about the exchange of data and, ultimately, business relationship management.”.
the outlook of how accelerated transaction times might impact B2B payments and, more specifically, the issue of late payments to suppliers, remains unclear. When NACHA first released its SameDayACH capability, only about 6 percent of the first 2 million transactions made in the service’s first 11 days were B2B payments.
B2B payments in the insurance industry suffer from many of the same challenges that other markets do: namely, check-based payments. But the market’s B2B payments practices present a tougher sell to make the switch from faster, electronic payment technologies, Peters told PYMNTS.
It’s the reason why paper checks remain a constant in B2B payments: Although businesses may not particularly like them, organizations already know how to send, receive and reconcile them. B2B innovators have a choice when they decide to search for a better way to move money between corporates. Work With What You’ve Got.
The buyer-supplier disconnect in how payments are made and received is a predicament at the cornerstone of many innovative B2B FinTech solutions. There may be fees associated with wire, cards and even ACH, he said, but ACH is “the best way to get paid — especially now that there is SameDayACH.”
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