Nicholas Braiden has spent over a decade navigating the complex intersection of blockchain and institutional finance, positioning himself as a leading voice in the evolution of financial technology. As an early adopter of decentralized systems, he has consistently advocated for the modernization of B2B payments, helping startups move beyond the constraints of legacy banking. Today, he shares his insights on the shifting landscape of commercial transactions, exploring why digital rails are finally overtaking the traditional paper-based methods that dominated the industry for decades.
This discussion covers the explosive growth of the ACH network, the persistent but dangerous reliance on paper checks, and the economic incentives driving businesses toward real-time settlement. Braiden also examines the “consumerization” of business payments and provides a strategic outlook for how financial officers should navigate the trade-offs between speed, cost, and security in an increasingly digital economy.
ACH transactions grew from 3.6 billion in 2015 to 8.7 billion in 2024. Why has this specific rail scaled so much faster than wires or cards, and what internal automation hurdles must a company clear to transition away from legacy systems?
The primary driver behind ACH hitting 8.7 billion transactions in 2024 is the relentless pursuit of cost-efficiency and systematic risk reduction. Unlike wires, which are designed for high-value urgency, or cards that carry heavy interchange fees, ACH offers a middle ground that perfectly suits the high-volume nature of B2B commerce. However, the transition isn’t as simple as flipping a switch; many firms struggle with the inertia of legacy ERP systems that were built around manual data entry. To clear these hurdles, a company must automate its vendor onboarding and integrate digital payment APIs directly into its accounting software to ensure data flows without human intervention. This shift moves a business away from a “human-in-the-loop” model toward a frictionless, automated treasury function that can handle thousands of payments simultaneously.
Median fees for ACH range from 25 to 50 cents, while checks often cost double that for both senders and receivers. Beyond direct transaction fees, what are the hidden labor costs of paper processing, and how do these impact a firm’s bottom line?
When you look at the 25 to 50 cent fee for an ACH transfer, it represents only a fraction of the total savings compared to the roughly $2 total burden of a paper check. The true “hidden” cost lies in the hours spent by accounts payable teams printing, signing, stuffing envelopes, and reconciling physical mail. There is an emotional tax on staff dealing with “lost in the mail” scenarios and the sensory frustration of manual filing that slows down the entire department. If a company processes thousands of checks, these labor hours quickly manifest as a significant drag on the bottom line, preventing the finance team from focusing on higher-value strategic analysis. By moving to digital rails, you aren’t just saving a dollar on the fee; you are recapturing hundreds of productive hours every year.
While check usage dropped to a 13% market share in 2024, nearly 90% of businesses still utilized them in 2025. Why does the “long tail” of check usage persist despite the risks of counterfeit and alteration, and what specific security protocols should replace physical signatures?
The persistence of checks—even with a 13% market share—is largely due to the “long tail” of small vendors and contractors who haven’t yet modernized their intake systems. Many businesses feel a false sense of security in the physical act of signing a piece of paper, even though the risks of mishandling and alteration are significantly higher than with digital alternatives. To move forward, companies must replace the outdated physical signature with multi-factor authentication and encrypted tokenization. These protocols ensure that payment instructions are verified through secure digital channels rather than a pen-and-ink mark that can be easily forged. Moving to a system where every transaction is cryptographically signed provides a level of certainty that paper can never match.
Average B2B transactions for ACH and checks hover between $5,500 and $8,100, while wires average over $3 million. How should a CFO determine the threshold for switching from ACH to a wire, and what are the trade-offs regarding speed versus settlement finality?
A CFO must weigh the $3.2 million average wire value against the necessity of immediate settlement finality and the cost of capital. For mid-sized payments around the $8,000 mark, ACH is the logical choice because the 50-cent fee is negligible and the 1-2 day delay is usually acceptable for standard invoices. However, when moving millions of dollars, the risk of a payment being reversed or delayed becomes a major liability, making the higher cost of a wire transaction a necessary insurance policy. The trade-off is simple: use ACH for the high-volume “engine” of the business and reserve wires for the rare, high-stakes transactions where the cost of a delay exceeds the fee. It’s about matching the rail to the mission-critical nature of the specific transfer.
Debit card usage in B2B payments rose from 13% to 17% over the last decade, yet credit cards remained flat at nearly 30%. What role does the “consumerization” of business payments play here, and how can managers better align their digital payment strategy with these shifting trends?
The rise of debit usage to 17% is a clear signal that business owners want the same seamless, instant experience they have in their personal lives. This “consumerization” means that managers are looking for the speed of a card transaction without the high interest or debt associated with traditional credit lines. To align with this trend, managers should implement “virtual card” programs that provide the control and tracking of a card with the direct-clearing benefits of a bank account. This allows for better spend management and real-time visibility into company expenses, mirroring the ease of digital wallets. It is no longer enough to offer a single payment path; businesses must provide a suite of digital options that cater to different vendor preferences.
Same-day ACH offers businesses increased speed for mid-sized transactions. What are the practical steps for integrating real-time or same-day capabilities into existing accounts payable workflows, and how does this shift change cash flow forecasting requirements?
Integrating same-day ACH requires a move away from the traditional “batch processing” mindset toward a more continuous flow of data within the treasury department. Practically, this means updating your bank connectivity to support intraday files and ensuring your internal approval workflows can keep pace with the faster settlement windows. This shift fundamentally changes cash flow forecasting because the “float” time—the period where money has left your account but hasn’t yet reached the vendor—effectively disappears. Accountants must become more precise in their daily liquidity management, as the window to correct errors or stop payments shrinks significantly. The result is a more accurate, real-time view of the company’s cash position, which is invaluable for fast-growing firms.
What is your forecast for B2B payment methods?
I expect that by 2028, we will see the total obsolescence of the paper check in the corporate world, with its market share falling into the low single digits. ACH will continue its dominance, likely surpassing 12 billion transactions annually as same-day capabilities become the default standard rather than a premium option. We will also see a massive surge in integrated “embedded finance,” where payments are triggered automatically by smart contracts or IoT devices upon the verified delivery of goods. The distinction between “paying an invoice” and “completing a transaction” will blur, as the financial rail becomes an invisible part of the supply chain. Ultimately, the winners in this space will be the firms that treat their payment infrastructure as a competitive advantage rather than just a back-office utility.