Will online bill payment spell the demise of paper cheques? A discussion paper by James McGrath of the Federal Reserve Bank of Philadelphia.
Today, the rapid growth of online bill payment looks to threaten cheques’ last redoubt. However, bill payment technology is still in its adolescence; the interplay of many stakeholders in the industry, including technology firms, banks, billers, payment cards, and customers, has led to rapid, unscripted innovation in just a few years.
This paper quantifies some of the trends in the industry while addressing the interests and impact of the market’s prime movers in an effort to determine to what extent the displacement of cheques will continue.
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