In 2015, Digital Check boldly projected the number of checks written in the United States – which was expected to drop to 12-13 billion, if previous trends had held – would begin to stabilize instead at a slightly higher number. The figures from the 2016 Federal Reserve Payments Study placed the number of checks at 17.3 billion, a slowdown of almost two-thirds from their previous rate of decline.
The new paper identifies several factors contributing to the stabilization of check volume:
– Previous disruptive technologies, such as direct deposit and online billpay, achieving market saturation;
– Newer payment methods, such as mobile wallets and cryptocurrencies, primarily competing with card transactions; and
– Resistance to setup costs or percentage fees for other check replacements, particularly among small businesses.
The Reappearing Check also examines evolving technologies and their possible effect on the check – including P2P payment platforms, such as the banking industry’s new Zelle app, and Electronically Created Items (ECIs), sometimes referred to as truly “digital” checks.
The new white paper is available on Digital Check’s website at www.digitalcheck.com/whitepapers.