When Are Checks Finally Going To Go Out Of Style?


For years, bankers and pundits alike have been talking about the end of the check. Checks have been used for thousands of years as a form of payment, allowing customers to pay without carrying large amounts of money on their person. Carrying large amounts of money can be potentially dangerous, and for centuries, it has been avoided by using checks instead. But now, it seems like checks have reached the end of their lifespan. Younger people aren’t using checks, instead opting to make payments through mobile solutions or other new technologies. Checks can be cumbersome to use, and that makes them unappealing to millennials who want to use products that are simplified and easy to process. Mobile solutions such as PayPal and Bitcoin are only going to grow, continuing to threaten checks’ continued usage.

Check Usage Has Decreased By Half In Past Decade

From 2003 to 2012, the number of checks used decreased from 36 billion to 18 billion—a cut of about half. Each year, the drop was about 2 billion. For a long time, pundits believed that the drop in usage of checks was due to an aging population. While that certainly played a part, a larger issue was that more people were simply using easier products, including ACH and debit cards. It isn’t just young people making the switch—middle aged people are doing the exact same thing.

Debit Cards And ACH Are Replacing Checks

Debit cards and ACH are simply easier to use. Electronic check processing, such as the type offered by eMerchantBroker.com, makes it easy to transfer money electronically without having to worry about spelling a name wrong on your check.

The Growth Of Mobile Payment Solutions Will Reduce Check Usage

As mobile payments continue to grow in scope and technical ability, expect a decline in check usage. Although checks had a long run, their time seems to be coming to an end. Newer payment technologies will continue to be created, and they will eat away at the usefulness of the check as well.

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