COVID-19 amplifies a need to adopt better payments systems for improved safety, speed and security
SAN MATEO, Calif., March 23, 2020 (GLOBE NEWSWIRE) -- Checkbook, a payments startup offering a Digital Check solution that only requires an email from the recipient, is calling on businesses and government agencies to stop sending physical checks, which are outdated and susceptible to COVID-19 and fraud, and instead use digital checks to pay customers and employees.
“Now is the time to make the switch to Digital Checks, and it’s become more apparent every day of this crisis,” said PJ Gupta, Founder & CEO of Checkbook. "Multiple government agencies and Fortune 200 companies have reached out to us since the COVID-19 crisis began, looking for ways to disburse funds immediately and safely during this time of need. We can’t afford to wait any longer!"
The paper check industry is massive, with more than 14 billion physical checks still sent each year, transferring a total of $21 trillion. In fact, as much as 60 percent of business payments are made using paper checks. Businesses in the insurance, banking, payroll, education, medical and mortgage industries, as well as government agencies, stand to benefit greatly from making the switch to Digital Checks. These industries frequently and consistently cut large numbers of checks to facilitate their consumer and business transactions. The benefits of Digital Checks that are directly relevant today, include:
Safety - COVID-19 has only amplified the need for paperless and digital solutions. People everywhere are practicing social-distancing and avoiding making contact with anything that can carry the virus, including the mail. This issue has been highlighted as several postal and delivery service workers have tested positive, and businesses can help prevent the spread of the virus by going digital. Digital Check recipients can also avoid having to leave their homes to go to a physical bank.
Speed - Digital Checks are instant while paper checks can take days and weeks to arrive in the mail, and require additional time to deposit into the recipient’s account. As thousands of Americans find themselves out of work in the wake of the crisis and the government contemplates a stimulus relief package, which would see most Americans receiving a check in the mail, the need for an online, handsfree solution is even more imminent.
Security - Checks are the payment method most impacted by fraudulent activity1 and a move to Digital Checks would put the money directly into the recipient’s control along with end-to-end status tracking, thereby avoiding mail check fraud altogether. Many COVID-19 scams are already bubbling up and more will surely surface as the crisis draws on; Digital Checks take such scammers out of the payment equation.
Checkbook is a San Mateo, CA based startup founded by former VISA Chief Network Architect PJ Gupta and funded by multiple investors including Tim Draper. The company is working towards eliminating paper checks and introducing the more efficient and secure Digital Checks, which can be cashed online using multiple payment options. There is no need to print, take a picture or scan because Digital Checks are paperless. In addition, the recipient does not need to log in, sign up or download an app. Checkbook provides the “last mile” of payments. For more information on Checkbook, please visit https://www.checkbook.io/
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1 According to the Association for Financial Professional’s annual “Payments Fraud and Control Survey Report”