BNY Mellon, one of the leading cheque processors in the United States, is taking proactive steps to minimize cheque-based transactions through a range of digital innovations and financial incentives.
To assist its clients with the shift from paper to electronic payments, the bank is investigating carbon-tracking tools that reveal the environmental impact of paper cheque usage. Additionally, BNY Mellon is offering discounts on certain digital payment solutions and waiving upfront implementation fees for select clients committed to making this transition.
Carl Slabicki, co-head of global payments at BNY Mellon, emphasizes the urgency of this shift. “Recent innovations in digital payments have highlighted the inefficiencies associated with cheque processing. The combination of business rationale and environmental considerations makes the case for electronic payments compelling. We are at the forefront of providing the tools and incentives necessary for this transformation.”
Currently, BNY Mellon processes approximately 2.3 billion cheques annually for bill payments, which has significant environmental repercussions—equating to the loss of around 455,000 trees. Protecting these trees is akin to removing nearly 5,000 passenger vehicles from the roads for a year.
Eric Boughner, chairman of BNY Mellon Pennsylvania, adds, “Options other than cheques have long been available. While we will continue to accommodate cheque transactions, our primary focus is now on delivering innovative solutions that facilitate the transition from paper to digital for our clients, alongside supporting their broader sustainability goals.”
As a result of BNY Mellon’s initiatives, clients have already begun to reduce their cheque usage, with a 3% decline in 2020 and an overall reduction of 8.5% since 2019, bringing the total cheque volume down to 291 million last year.
The bank’s dedication to diminishing reliance on paper cheques aligns with a comprehensive digital strategy from its Treasury Services division. Recently, BNY Mellon launched a real-time electronic bill and payment solution that enables US businesses to present digital invoices to customers instantly, allowing for immediate payments through their preferred online and mobile banking channels.