Commercial Check Values Surge Upward?

In a recent report, Javelin Strategy & Research has provided a comprehensive analysis of the commercial payments landscape, offering valuable insights into the evolving world of business transactions.

The report delves into various aspects, including the expansion of commercial card use, the impact of external factors like tariffs, and the continued prevalence of checks despite the rise of digital payment methods.

While the use of commercial checks is declining, the report reveals an interesting trend: an increase in the value of individual check payments. In 2018, the average commercial check value was $2,938, a figure that has steadily risen from $2,438 in 2015 to an estimated $4,533 by 2024. However, the reasons behind this increase remain unclear.

Emerging options like Same Day ACH and virtual cards are gaining traction, according to the report. These new methods are poised to challenge the traditional dominance of checks, particularly in high-value transactions, where checks continue to serve a specific function.

The report also examines trends such as the rising influence of fintechs and smaller banks, as well as economic shifts and their influence on behaviour. It draws data from reliable sources such as the Federal Reserve, IRS, and Census Bureau, providing a detailed view of $175 trillion in commercial payments flowing through the US economy.

The report is organized by industry and highlights the most widely used payment methods. It also offers key benchmarks, including DPO, DSO, inventory days, and funding gaps, providing insights into liquidity pressures across sectors.

Furthermore, the report serves as a valuable resource for product development, market sizing, or go-to-market planning in the business payments environment. However, it does not provide specific data on which banks have shown the greatest increase in the use of commercial cards in business expenses in recent years.

In conclusion, Javelin Strategy & Research's Report: Commercial Payments Factbook offers a detailed and informative look at the current state and future trends of the commercial payments landscape. It is a must-read for anyone interested in understanding the intricacies of business transactions in the digital age.