Although check writing was the primary means of monetary exchange in the 1980s, today the practice is hardly used. Compared to the instantaneous gratification of a quick Venmo or Zelle payment, checks are a much slower exchange of funds.
By Maddie Duley
However, while this process is a slower form of payment, it is still commonly used today by landlords, contractors and real estate agents. Additionally, for people without internet access, having a checkbook is a necessity. Still, though writing a check remains a trusty method of taking care of expenses, this old-school technique is currently overshadowed by newer and faster online payment options.
According to a recent survey conducted by GOBankinrRates, 45% of Americans have not written a check in the last year. In light of this data, let’s take a closer look to find out what alternative methods Americans are using to exchange money.
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45% of Americans Didn’t Write a Check in 2022
While writing checks may be less popular than it used to be, 55% of Americans still wrote a check in the past year. According to our survey, in the past year, 15% of Americans wrote a few checks a month, 12% wrote less than six checks, 23% wrote a check once a month and 5% wrote more than 12 checks.
While many Americans did not write checks last year, the practice was least popular for those under 54. Our survey results showed that 43% of those aged 18-24 did not write a check this past year, along with 49% of those aged 25 to 34, 47% of those aged 35 to 44 and 49% of those 45 to 54. While the practice might be dwindling, many Americans in the 55 and over age group still write a few checks check a month — with 24% in the 55 to 64 age group and 25% in the 65+ in this age group reporting this.
On the other hand, some age groups reported writing a single check a month in 2022 — 28% percent of 18-24-year-olds and 24% of those over 65 fell into this category. In contrast, only 17% of those in the 45 to 64 age bracket reported once-monthly check-writing.
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Why Check Writing Is Becoming Rare
Today’s digital landscape is affecting how everyone is handling their money as the exchange of finances is shifting to a more virtual sphere and the need for physical checks is dwindling.
“Besides the odd property tax bill or service person who only takes checks and credit cards; electronic payments can handle everything else,” said Jay Zigmont, PhD, CFP and Founder of Childfree Wealth. “It may not be about using apps or fancy tools, but just using basic credit cards and EFTs (electronic funds transfers).”
How Americans Are Exchanging Money Today
If you have never written a check before, the thought of writing down numbers on a slip of paper and trusting the money gets into the right hands can feel like a risk — especially with the instantaneous, more-secure money-transfer methods available today.
Often, payment apps such as Venmo and PayPal require biometric screening of your face or finger to authenticate money transfers. They also restrict users from re-entering their security details and feature buy-in options for extra risk protection. These added details to trusted payment apps are leading many users to opt into the digital sphere and away from paper money methods.
Most Popular Payment Apps in 2023
PayPal, Venmo and Zelle continued to take the digital payment sphere by storm in 2022 and are the front-runners for payment apps in the new year.
PayPal
With 432 million users at the end of 2022, PayPal is the largest online payment processing site worldwide, according to Statista. With its intuitive design and high encryption standards, many users prefer this app for its security and convenience.
Venmo
If you want to buy your friend their next coffee or send your aunt some gas money for driving you to the airport, you can’t beat the convenience and simplicity of Venmo. Venmo users can transfer money directly to their bank account or debit card in 30 minutes or less, and the service is a fantastic option for sending money to peers and family members. Venmo requires a verified bank account in order to transfer money and users can add additional security by adding a PIN or two-step verification to their account.
Zelle
Similarly to Venmo, Zelle is a popular payment app for peer-to-peer payments that allows users to send and receive money among banks instantaneously. In addition to having a mobile app, Zelle is also offered within the apps of many major banks and credit unions across the U.S.. Transfers in this app are free for users and offer free immediate payments.
