Ask a millennial if they have a checkbook and most would say no. Truth is, this answer is becoming increasingly popular with consumers of all ages. A study by The Federal Reserve found that between the years 2000 and 2012, the number of payments made by check in the United States decreased by more than 50%. There are various factors causing this decrease, but the transition is led mainly by the increased role of technology in our daily lives, the security offered by making a payment electronically, and the desire to go paperless.
Many consumers of all ages are attempting to make the transition into a “greener” and less cumbersome way of life. Many banks deal only in online banking and run their businesses completely paperless (Ally Bank and Barclays to name a couple). Consumers find it easy to make the switch from leaving a paper trail to viewing their statement online when their banks are leading the way by offering simple, free alternatives to paying with a paper check. This also declutters the consumer’s life, and keeps all of their valuable information stored securely in the cloud by those who do it best. Paper checks may still be an acceptable form of payment, but all of these trends show that they may be obsolete in coming years as consumers search for ease, secure transactions, and easy ways to cut paper waste out of their lives.
How does this affect your real estate transactions? Many buyers may not have a paper check to use for earnest money payment, but that’s not the only option that can be offered to them. Use TrustFunds to make simple, quick electronic earnest money payments and never have to deal with a paper check again.