One of these is checks, which, just a few decades ago, were a common way to transfer money from one account to another and handle day-to-day financial tasks. However, all statistics show that the use of checks is greatly reduced, which has led some to declare them obsolete. But are checks really on their way out? We’ll examine the state of check usage today and how technology might be evolving.
How They Are Being Used
While checks are certainly way less popular than they used to be, it’s unfair to see that they have become obsolete, per se. If anything, they have seen a reduction in use and have evolved in many ways.
E-checks, for example, allow users to transfer money from one account to another through a clearinghouse. Several online platforms are beginning to embrace the e-check, and this gives them some form of use. The gambling sector, for example, has been a major adopter of this concept, which means people of different ages are beginning to embrace it.
These days, a casino with eCheck as a payment option is much more common, and we can expect to see even more moving forward. So, the check has not necessarily disappeared, but is taking on a new form. It’s also worth noting that an e-check does not have the same loss and damage issues as a paper check.
Plus, certain individuals and institutions still find benefit in using checks, such as businesses making large transactions that don’t want to deal with transaction fees or possible delays for cross-border transactions. While your average person isn’t paying for their shopping or their rent using a check, such businesses will still turn to them to address their needs.
Why Checks Are Less Common
Depending on how old you are, you might have memories of your parents and other adults completing transactions using checks, and always having their chequebook on hand. You might have even used it at one point to pay for bills, complete everyday purchases, and much more. But these days, it’s less common to see checks being exchanged, and statistics indicate that most adults don’t even own a chequebook anymore.
There are several reasons to credit this, and most of them have to do with technology. Simply put, many of the transactions we would have paid by check can be done digitally, eliminating the need for checks. For example, making a payment to a school or for a loan can be done from a mobile app and doesn’t need a chequebook. Many more of us shop online than in person, and your average e-commerce platform like Amazon won’t accept a check from you. The same goes for mobile-powered gaming apps, food delivery apps, and the like.
As more and more of us use things like credit cards, digital wallets, cryptocurrency, and more, we simply don’t have avenues to use checks. In return, banks are less interested in handing out chequebooks to users as they will not see any utility. For many of us, digital platform payments also eliminate some of the risks and inconveniences associated with a check.
A check can be lost or destroyed, but a digital payment is much easier to navigate in terms of security. The use of checks has been declining for several years now, raising questions about what the future may hold.
Conclusion
As technology and human behavior continue to evolve, as well as our financial habits, checks find themselves in the crosshairs. Compared to just a few years ago, checks are much less common and are mentioned much less. However, it is a bit hyperbolic to suggest that checks have become entirely obsolete.
Instead, they have been reduced to use and are now a bit of a niche payment option, usually leveraged by large businesses. At the same time, e-checks are giving new life to the payment methods, essentially combining the ease of transfer of a traditional check with the flexibility of the digital world. While it’s unlikely that checks will begin to compete with credit and debit cards for transactions, it’s clear that the story is not over.