Will Mobile Payments Kill the Checkbook?

The checkbook is the go-to mechanism for making bill payments for a lot of people out there, though it seems that there are a growing number of forces eager to take out this common financial instrument.

More businesses are eager to get users on automated bill-payment systems where amounts are directly debited instead of a paper-based claim on that account being issued.

That’s not the only point that could be killing the checkbook, however, and one of the biggest dangers to the check could be mobile payments.

A recent report from designer check maker Checkomatic shows that there are some significant problems, but that the check is proving surprisingly resilient.

There are still many businesses that find paper checks quite necessary, particularly for certain payments. Payroll functions, for example, are one major use of paper-based payments. The United States is one major user of paper checks, as is France.

Mobile payment options are sometimes stepping in, but there are some troubles here as well. In some cases, mobile payment options simply aren’t available; many creditors won’t allow payment by any other means.

Some mobile payment options aren’t suitable even if they were available, as there are transaction limits placed on mobile payment systems. Some allow the option and have suitable options available, but work directly against mobile payments by charging higher fees.

Meanwhile, surrounding the whole field is the ever-present threat of hackers and a direct loss of potential income that can come with it. By comparison, checks come with no fees, being almost as good as cash, can be mailed anywhere, traced readily, and aren’t exactly easy to hack and commit fraud with.

That’s changing on some levels, though. Individuals are finding mobile payments less cumbersome than writing out a check, and just as safe; it’s one thing to carry a wallet full of cash around, it’s another to carry a checkbook with access to the same amount or even more, and a mobile payment system is similar in that regard.

So will the checkbook die at the hands of mobile payments? Eventually, maybe. As mobile payments develop, prove their safety and worth, and fee structures change to reflect this, we might have more users passing over the checkbook. For now, though, the check will have a place in everyday life, and may hold it for some time to come.