CTO point of view: ACH is moving fast – Flywire is there

David King
David King
is CTO at Flywire.

When most people think of ACH, they associate it with their paychecks. By one estimate, 93% of people receive their paychecks through direct deposit. But ACH is actually the fastest growing payment method in the U.S. for both receiving and sending payments – including B2B payments, some healthcare payments, education payments and many large value recurring payments.

We continue to believe that one of the major advantages of paying with Flywire is that our users can choose their payment type. As ACH begins to permeate the industries we serve and tops the list of preferred payment methods, we want to make sure we’re in the best place to support all of the growth and innovation in the ACH space.

To that end, I’m excited to share that Flywire recently became an affiliate member of Nacha – the body that oversees this fastest growing payment type in the U.S. Nacha is the leading organization for the development, administration, and governance of the ACH (Automated Clearing House) Network. Nacha plays a critical and massive role in the U.S. by providing a secure and efficient electronic bank transfer process. Here’s some proof from recent Nacha data on the ACH Network:

  • A total of 30 billion payments valued at $76.6 trillion moved via ACH in 2022.
  • From 2020-2021, B2B payments through ACH grew by 20%, and another 11.8% from 2021 to 2022.
  • Since surpassing checks as the highest non-cash payment method in 2009, ACH transfers have grown to 72% of core non-cash payments value in 2021.

Flywire already has deep roots in one industry in focus for Nacha – healthcare. While Nacha’s focus now is on streamlining and expediting claims payments, there is a lot of potential to streamline patient payments. Patients receiving services at the largest healthcare systems in the U.S. – including CommonSpirit and Tenet Healthcare – pay through Flywire. We continue to innovate in ways that drive affordability for patients and increase collections for providers, all while ensuring the highest levels of security for patient payments.

Innovation also rings true in the education space. Students at some of the largest colleges and universities in the U.S. use Flywire to pay their tuition bills and other education expenses in flexible ways that best fit their financial need. Flywire enables institutions to present payment plan options to their student population, helping to make paying for higher education more affordable. In addition, to drive down past-due tuition rates, Flywire helps institutions keep students enrolled by offering payment plans and directly collecting on debt before it is referred to collection agencies.

Finally — and perhaps the biggest area of opportunity – is in streamlining B2B payments. AFP’s 2022 Digital Payments Survey saw 40% of the respondents saying they’ll convert the majority of B2B payments to suppliers to digital methods over the next three years. Recent payment volume data from Nacha tells a similar story — a 20% drop in check conversion volume, coupled with a 15.5% increase in ACH B2B payments. Flywire supports ACH in processing B2B payments.

Flywire's membership in Nacha reflects our continued commitment to staying ahead of the latest industry standards to protect our customers across the verticals we serve. By becoming a Nacha Affiliate Flywire now can:

  • Access Nacha’s education resources to gain industry knowledge through research that helps us stay ahead of the curve by keeping up with the latest regulations and trends.
  • Participate in Nacha’s committees and workgroups and help shape future regulations.
  • Help advocate for and influence Nacha regulations on behalf of the verticals we serve in education, healthcare, travel, and B2B.
  • Stay current on the Nacha Operating Rules and other developments impacting the ACH Network.

For more information on Flywire and payments innovation: