Paper Check Could Be a Thing of the Past, says Celent
Paper check processing could nearly disappear in the US by the end of the decade, according to a report by Celent. Image exchange of transit checks will grow from more than 14 per cent in 2005 to 61 per cent by 2007. By 2010, more than 93 per cent of transit items will be image-exchanged. In the report, The Future of Check Processing in the US, Celent examines the significant transformations affecting the American check processing industry. The report scrutinizes the path of adoption of image processing, the fate of check conversion to ACH (often seen as a rival alternative to image exchange), and the prospects of technology vendors, third-party processors, clearing houses and image exchanges. Among other key findings, Celent expects the total volume of checks presented to amount to 38 billion this year and to gradually slide down to 24 billion by 2010. The decline in checks processed will accelerate over the next two years as check conversion takes a bite out of volume, but conversion and truncation will not share the check processing roost forever. The report said that by 2006, Celent expects that check clearing fees will either level with ACH clearing fees or come close enough to justify switching gears from ARC to check image exchange.