Have you fully embraced electronic payments for virtually all the transactions you make? Without a doubt, you belong to the majority who prefer living in a paperless society. Despite the declining role of cheques, however, they still prove relevant in the digital age. Cheque payments account for a small portion of everyday purchases, yet many businesses still choose to write cheques particularly when transacting with other businesses.
All signs point to consumers moving toward digital transaction instruments. This is thanks to advancements in financial technology, which dictate the global growth trend of electronic payments. Even governments in many countries promote using digital payment systems, forcing public sector bodies to stop issuing and accepting cheques in all their business dealings.
It’s interesting to point out that although the use of this long-standing payment method has seen a steady decline over the past two decades, there continues to be a certain level of demand. This mainly involves older consumers and small business owners. Perhaps unsurprisingly, this decision to use a cheque for daily transactions boils down to familiarity.
A survey shows that businesses that still make and receive payments by cheque do so because cheques are the most familiar mode of payment for them. Not going with the trend means one less thing to worry about for business owners, allowing them to focus on their day to day operations. Moreover, owners like using cheques because they make it easier to keep track of their cash flow. This is particularly beneficial for small business owners who may need some extra time to gather funds before completing a payment.
Many believe it’s only a matter of time before everyone bids farewell to the cheque as a payment instrument, but that time doesn’t seem to be arriving in the near future. Many consumers are in no rush to abandon their chequebooks just yet. The older generation particularly likes using cheques today, as many of them aren’t familiar with new technology, thus making them feel like taking on a higher security risk.
The good news for people who still use cheques is that financial technology has come up with mobile cheque imaging. This is a relatively new technology which allows users to snap a photo of their cheques using their smartphones and sending a copy to their bank. The bank deposits the cheque without having you physically visit their office. This is a win-win situation, especially for older folks who find the process simpler than creating a totally new account on mobile wallets, accountancy platforms, or digital payment services.
While financial technology has come so far over the last twenty years, it’s clear that people do not simply ride the tides. Instead, they choose the payment method that best fits their needs and solves their problems. It isn’t fair to judge those who decide to hold onto their chequebooks. Despite the efficiency and convenience usually associated with digital payment systems, a lot of people will continue writing cheques if that’s what they’re comfortable with.