A new report from Aite Group, Converging Wire Transfer and Automated Clearing House (ACH) to Revolutionize U.S. Electronic Wholesale Payments, advocates replacing the existing Automated Clearing House (ACH) and wire transfer systems with a single electronic wholesale payment system. Converging the wire transfer and ACH systems will provide optimum payments capabilities and services, significant cost savings, and revenue-generating opportunities. The report examines market factors and initiatives that suggest that now may be the time for this investment for the future of the U.S. payments system.
“Financial institutions typically maintain both ACH and wire transfer systems, and in many cases, they maintain multiples of these systems as a result of mergers and acquisitions,” says Nancy Atkinson, senior analyst with Aite Group and author of the report. “Because of this, participants throughout the entire payments industry are incurring meaningful expenses that could be reduced through the adoption of a single electronic payments system. There are currently compelling market factors and industry initiatives that are pointing the way toward systems consolidation in the U.S. payments industry.”
The report outlines iterative steps and alternatives to improve the current electronic payments environment without eliminating existing systems.