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How to increase customers, revenue and efficiency: Implement account-to-account transactions. The use of account-to-account payment methods can help you achieve these goals.

Also known as bank-to-bank transfers, this transaction type is on the rise as businesses and consumers work with a payment solutions company to experience the advantages of faster payments through digital processes that fit their specific needs. Real-time payments, for example, accounted for 17 percent of all disbursements made in 2021, up from 5.7 percent in 2020.

The Clearing House’s Elena Whisler told PYMNTS that RTP® Network volumes will “at least” double in 2022 as account-to-account payments and corporate disbursements grow in popularity.

Same Day ACH payment value more than doubled in 2021, increasing by 105 percent. As a whole, ACH Network payment volume increased nearly nine percent in 2021.

Jane Larimer, Nacha President and CEO, said, “Throughout 2021, as the accelerated shift from paper to electronic payments continued, the ACH Network proved its resiliency and value to the nation. The figures for the year bear that out.”

Your Guide to Understanding Account to Account Payments

Which Industries See Value from Account to Account Payments?

Marketplaces

Marketplaces funds flow: gray squares with white graphics, Buyers with purchases going and refunds receiving from Marketplace then payout going to, fees coming from, refunds coming from Sellers

Account-to-account transactions are an alternative payment method for marketplace payments instead of credit cards. We’re seeing marketplaces integrate with a payment solutions company, then create loyalty programs and reinvest the savings from avoiding the card processing fees back into their customers.

The customers are financially rewarded and incentivized for not using a credit card. Meanwhile, account-to-account payments start making their way into the retail transactions.

Gig Economy

Having a daily payment option should be the standard for the gig economy. With real-time payments, an application for paying independent contractors gives workers the benefit of daily payouts. Drivers can receive on-demand pay rather than wait hours or days, giving the company greater control over transaction timing and a competitive advantage in a crowded market.

The near instantaneous functionality of the RTP® Network, combined with the speed of push-to-debit, gives an innovative trucking company the option to pay its drivers in near real time—not just when banks are open.

Having these types of options enables the company to pay its workers once they complete a shift, rather than having them wait for weekly settlements.

Financial Services, Real Estate and More

The gig economy is not the only sector that benefits from account-to-account transactions; traditional sectors, such as financial services and real estate, are being digitally transformed too.

Insurance companies are utilizing Same Day ACH debit and credit transactions to collect premiums from policyholders and pay claims. Property managers are collecting payments from tenants and disbursing funds to vendors while avoiding checks that take days to mail, deposit and process.

Account-to-account transfers have helped businesses across a variety of industries take back some of the profits that were previously being sacrificed to cumbersome processes and costly processing fees.

Contact our team to talk through your use case with a payment solutions company.

 
 

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