Small businesses in U.S. still heavily rely on paper checks for payments

From Yahoo Finance: 2025-07-01 12:38:00

Small businesses in the U.S. are still heavily reliant on paper checks for payments, despite advancements in digital transactions. Over 90% of businesses use paper checks, with $6 trillion annually going to 33 million small businesses. Companies like BillGO are working to convert paper checks to digital payments for faster cash flow.

BillGO, based in Fort Collins, Colorado, has raised $187 million and has 75,000 customers in its payment network, BillGO Exchange. The platform integrates with bank infrastructure and software tools like QuickBooks, speeding up payment processing from 10 days to as little as one business day. CEO Dan Holt emphasizes the importance of converting paper checks to digital for quicker access to funds and reduced risk of fraud.

Despite technological advancements, paper checks are expected to remain prevalent in the U.S. for another 20 years due to the complexity of the banking system and software providers. Many small businesses prefer virtual card payments over ACH transfers for easier reconciliation and more trust in the card network. The industry is still in the early stages of transitioning from paper checks to digital payments, with potential for growth and innovation.

The preference for virtual card payments over ACH transfers among small businesses highlights the importance of trust and ease of reconciliation in payment methods. Small businesses find virtual cards more reliable and secure than ACH transfers, with faster resolution of chargebacks and disputes. The industry is still evolving, with opportunities for growth and optimization in digital payment solutions.

Read more: Small business isn’t quitting checks