Welcome to Innovating Payments Top 3 News Headlines for the Week of Nov. 26, 2023. The Federal Reserve Board announced pricing, effective Jan. 2, 2024, for payments services it provides to banks and credit unions, including clearing checks, ACH transactions, and more. Also in the news, the ongoing adoption of Same Day ACH and the continued increase in business-to-business (B2B) payments led the ACH Network to robust results in the third quarter of 2023. Meanwhile, Venmo announced the introduction of Venmo Groups, an in-app feature that lets users easily split, track, and manage ongoing expenses between groups.
Read on to learn more.
1. Federal Reserve Board Announces Pricing, Effective Jan. 2, 2024, for Payment Services the Federal Reserve Banks Provide to Banks and Credit Unions (Federal Reserve)
The Federal Reserve Board on Friday announced pricing, effective Jan. 2, 2024, for payment services the Federal Reserve Banks provide to banks and credit unions, such as the clearing of checks, automated clearing house (ACH) transactions, and wholesale payment and settlement services. By law, the Federal Reserve must establish fees to recover the costs, including imputed costs, of providing payment services over the long run. The Federal Reserve expects to recover 103 percent of actual and imputed expenses in 2024, including the return on equity that would have been earned if a private-sector firm provided the services.(Read more.)
2. Same Day ACH Growth Helps Lead ACH Network to Solid Third Quarter Results (Nacha)
Ongoing adoption of Same Day ACH and the continued increase in business-to-business (B2B) payments led the ACH Network to robust results in the third quarter of 2023. There were 212 million Same Day ACH payments with a total value of $608 billion, increases of 20% and 27.1% respectively over the third quarter of 2022. So far in 2023, the ACH Network has handled 597.6 million Same Day ACH payments valued at $1.78 trillion, respective increases of 16% and 42.4% compared to the first three quarters of last year. (Read more.)
3. Introducing Venmo Groups (PayPal)
Venmo today announced the introduction of Venmo Groups, a new in-app feature that lets users easily track, split, and manage multiple or ongoing expenses among groups like friends, family, roommates, partners, and more. Venmo Groups automatically calculates the individual amounts due based on the overall spend of each person in the group, reducing the need for spreadsheets, multiple apps or mental math to settle up.
More than 84% of consumers say they've used a peer-to-peer service, with common payments ranging from monthly rent to household costs and travel expenses. (Read more.)
How will the Federal Reserve's pricing impact your financial institution? Does the increase in ACH B2B volume reflect what you're seeing at your financial institution? What potential effect might Venmo groups have on consumer expectations?
Check back soon for our next issue, highlighting the industry's most pressing and need-to-know developments. Until then, visit us online at Innovating Payments.
#IndustryNews
AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.