Declining Use of Cheques: Does It Imply its Death a few Years from Now?
Around one decade ago, a Toronto based company boomed in its trade and made a lot of money out of it. It’s business-cheque printing. After 10 years passed by, this company shifted its trade to technology that helps many financial institutions nowadays. The reason behinds this is because cheque printing declined to only 20% of the company’s total revenue. With the advent of electronic forms of payments which offers efficiency and convenience to everyone, a question is raised by many; “will cheque payment soon die”?
“It has been forecasted that everyone will soon decline using cheques. With this in mind, our company resorted to think of ways on how to serve its banking customers well and diversify its revenue at the same time”, admitted DunayHannay; DH Corp.’s Canadian Division President.
“Now, banking customers are presented with digital payment options like email money transfer. This resulted to the 5% annual decline in paper cheque usage”, admitted the Canadian Banker Association.
However, a closer look to cheque issuance showed that business cheque issuance has improved over time. In fact, cheque issuance is good for accounting purposes especially when you are using an Accounting Software to track down your financial records. Now, there are companies that find a good tenure in check printing business like Checkomatic which offers Checkomatic Checks & Envelopes.
“Many of today’s Canadian entrepreneurs rely on cheques when running their businesses simply because it offers great integration in their workflows. And though there is a decline of cheque issuance on the consumer side, such is not the case on the business aspect”, says DunayHannay.
In addition, this is what Hannay stated in response to the overblown prediction of cheque’s death; “The rate of the cheque’s decline did not happen at a pace it was predicted”.
For now, the Toronto based company expanded its trade to digital payment services by offering technologies that can be employed by banks when making loans. This ending segment resulted to 40% of the company’s revenue. And with a $1.25 billion dollars deal with New York based global payment services; the company is on its way to expand its customer base in U.S.
Hannay also admitted the company’s plan to broaden its cheque business and saw some light in today’s remote deposit capture technology. This offers convenience to clients by simply taking a photo of one’s cheque using his smartphone. With this, Hannay is positive that paper cheques will still be with us for more decades or so.