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As technology becomes more convenient, secure, and cost-effective, more people are preferring to go digital as much as possible in their daily lives—this includes their payments.
45% of Americans didn’t write a check in 2022, which means that almost half of the population is now opting for a more digital route to payments.
In this post, we’ll explore the pros and cons of paperless payments and share some tips to manage your paperless receipts and invoices!
What are the pros of paperless payments?
1. They’re more efficient and convenient to use
Paying with cash or check can be time-consuming for both the customer and the business and can also leave more room for error.
Going paperless with payments makes processing transactions almost instant, saving time and preventing the possibility of human error that might otherwise come from manual transactions.
Not only can digital payments be managed online, but they can also be made anywhere and at any time.
2. Paperless payments save money
With paperless payments, you eliminate the need for paper checks, envelopes, stamps, and other associated expenses.
Issuing and receiving a paper check can cost between $2-$4, and the further the destination, the more postage you would have to pay.
Depending on your business, that money could add up quickly.
3. Digital payments have enhanced security and fraud prevention
Digital payment methods are often more secure than cash and check payments.
Paperless payments often incorporate encryption and other security measures to protect sensitive information such as card numbers, PINs, account numbers, and social security numbers.
Did you know that more than 1 million checks are forged each day in the US?
While you may not be forging checks, a forged check could be given to you.
Processing a forged check can result in bounced check fees, lowering your credit score, delayed payments, and may even lead to a felony and imprisonment.
So by going the paperless billing route, you can avoid any troubles.
4. It’s easier to keep track of transactions
For businesses and individuals, it can be a hassle to keep up with stacks of paper receipts and proofs of payment.
Since digital payments are processed online, you leave behind a trail of transactions that you can easily find and keep a record of.
5. Paperless payments reduce waste
By going digital with our payments, we would lower the amount of paper used to print checks and receipts, helping to reduce waste and leave less of an impact on the environment.
For more on digital payments, check out this video:
What are the cons of paperless payments?
1. Not everyone is convinced
While more than half of Americans use their phones to make payments, the remaining population isn’t too keen on the idea.
Many consumers and business owners still prefer paper payments, such as cash and checks, because they feel it’s a more tangible and safer way to pay and receive funds.
Though the world is turning to digitized currency, many countries also still prefer cash or check payments. So, paperless payments may not be available everywhere you go.
2. Theft is still possible
While paperless payments can enhance security and reduce the risk of fraud, they can also be vulnerable to cyberattacks, data breaches, and identity theft.
3. Regulatory issues
In the US, consumers are able to choose which digital platform they use to send and receive money, such as Paypal, Venmo, and Zelle.
Some of these applications can even be used to transfer funds to other money apps.
That said, different countries have various laws and regulations regarding payments, including international or cross-platform payments.
These issues can lead to delayed payment processing or transaction denial.
What are some tips to manage paperless payments, receipts, and invoices?
If you’re new to the world of digital payments, these tips can get you on the right track:
- Set up automatic payments from your bank so you never forget to pay a bill
- Monitor and check for any suspicious activity to avoid fraud
- Create a separate email to differentiate between personal mail and business payments
- Digitize your important files, receipts, or invoices so you always have a backup to your paper documents
How Shoeboxed’s MailMate can help you manage digital payments
Shoeboxed’s MailMate is a virtual mailbox service that lets you receive your mail anywhere at any time in the world.
With MailMate, your physical mail (including paper bills) will be forwarded to a secure scanning location, digitized, and uploaded for your account to view.
From your online account, you can pay bills and easily search for past payments.
MailMate is great for businesses and individuals alike and offers flexible payment options so you can find the perfect plan for your situation.
In closing
Paperless payments are a great way to save time, money, and resources.
As technology continues to evolve, we can only expect digital payments to phase out cash and checks to become the norm.
Tammy Dang is a staff writer for Shoeboxed covering productivity, organization, and digitization how-to guides for the home and office. Her favorite organization tip is “1-in-1-out.” And her favorite app for managing articles and deadlines is Monday.com.
About Shoeboxed!
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We expanded with a new service, MailMate! Use our virtual address and mail scanning service to receive your digitized business mail so you can take control of reading and managing your mail from anywhere.
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