The federal government’s efforts to phase out checks comes at a time when check usage is already in sharp decline. From 2015 to 2024, check payments dropped from 6% to 2.5% of consumer transactions, according to data from the Atlanta Fed.
The study underscores how broad and consistent the decline has been. Consumers across all demographics are using fewer checks, and they’re used less frequently across nearly every type of payment.
Consumers gave checks low marks for convenience, security, and speed. Only cash was rated lower for security, while money orders scored worse in the other categories. More than 90% of consumers reported that they prefer not to use checks to pay bills—only 6% actually did.
New Options for Businesses
The decline in check usage has had ramifications across a wide range of payment environments. From 2015 to 2024, the share of payments by check made to contractors dropped by half, from 53% to 27%, as more began accepting payments via mobile apps. When many churches introduced electronic collection baskets with automatic weekly contributions, checks written to charities fell from 33% in 2015 to 20% in 2024.
The federal government remains a significant source of check usage, with 23% of benefit recipients still receiving assistance in the form of checks or vouchers as of last year. However, the Trump administration has set September 30 as the target date to eliminate paper checks for government disbursements.
The Personal Touch
The shift is even more pronounced in personal transactions. Not long ago, it was common to write a check to a babysitter or tuck one into a birthday card. A decade ago, 17% of person-to-person payments were made by check. By 2024, that figure had dropped to 6%.
This decline is part of a larger trend toward digital P2P apps. In 2015, 87% of P2P payments were made using cash, checks, or money orders. By last year, that share had fallen to 45%. Today, more than half of all P2P payments are completed using a card, bank transfer, or funds stored in an app.
Although baby boomers are often seen as the last generation loyal to checks, even their usage is waning. In 2015, consumers over 65 made more than 10% of their payments by check. As of 2024, that number has dropped to just 5%.
