Up until the 1990s, it was still common to pay for your groceries with a check. Fast forward nearly 20 years, however, and paper checks are becoming few and far between. According to a 2016 report from the Federal Reserve, there were about 144 billion non-cash payments in 2015, and only 32% of all consumer payments were in cash.
But what does this mean for business-to-business (B2B) transactions? As the landscape of payments continues to evolve, the most successful, forward-looking businesses are adopting electronic payments for both consumer and B2B transactions. Though checks still make up nearly half of all B2B payments, there are no signs that the preference for electronic payments is slowing
down—a momentum that will make checks more and more obsolete.
In its 2016 Electronic Payments Survey, the Association for Financial Professionals found that 51% of B2B payments are made by check. However, 70% of respondents believe their organizations will convert the majority of their payments to electronic methods within the next three years.