SMBs Need to Cut the Check Before Checks Cut Them

It’s 2025, and yet many of America’s businesses are still stuck in the past, stubbornly clinging to paper checks. The problem with doing payments the same way they’ve done since the 18th century? Fraudsters, always looking for an easy target, are increasingly using 21st century technology to perpetrate check-based fraud and scams.

According to the latest PayTechFocus Money Mobility Tracker, a collaboration with Ingo Payments, check fraud is skyrocketing. Businesses that refuse to go digital are practically inviting criminals to cash in.

While real-time payments, digital wallets and artificial intelligence (AI)-driven security promise a safer financial future, checks remain a glaring weak spot in America’s payment system. Despite their well-documented security risks, checks still account for nearly 40% of all B2B payments. And 70% of companies using checks have no plans to ditch them in the next two years.

The reason these firms haven’t ditched the paper?

Many perceive checks to be low-cost or “free,” but manual processing creates hidden expenses. Time, labor and delayed payment cycles add to these costs, and fraud losses only amplify the financial burden.

The cost? A jaw-dropping $24 billion in estimated losses from check fraud in 2023 — double what it was just five years ago.

Small Businesses Are Fraud’s Biggest Losers

Some businesses mistakenly believe checks offer greater control over cash flow since they can determine when to issue a check rather than relying on automated clearing timelines. However, this perceived control comes at a steep security cost.

Criminals are stealing checks from mailboxes, forging signatures and even selling check details on shady Telegram channels. The growth of check fraud is outpacing the decline in check usage, creating a paradox where businesses that continue using checks face an increasing likelihood of fraud. The report cites data indicating that nine out of ten bankers have witnessed a surge in check fraud in recent years, with 28% of banks reporting a more than 50% increase in fraud cases over the past three years.

But while big banks can absorb fraud losses, small and medium-sized businesses (SMBs) are getting crushed. According to the PayTechFocus Intelligence report findings, nearly 1 in 4 SMBs fell victim to check fraud last year. Unlike large corporations with dedicated fraud teams, SMBs waste hours chasing down fraudulent transactions — time that could be spent growing their business.

Banks and FinTechs have spent the last decade building faster, safer digital payment systems, but businesses are still dragging their feet. According to the report, artificial intelligence (AI)-driven security is already helping 35% of firms detect fraudulent transactions, yet companies remain hesitant to fully embrace digital payments.

Among the key reasons for continuing to rely on check payments are the chicken-egg reliance on established businesses practices paired with a lack of digital infrastructure. Organizations are reluctant to overhaul legacy payment systems, preferring to stick with familiar methods, and some SMBs lack the technological resources to implement and maintain digital payment solutions.

Ironically, some businesses fear the security risks of digital payments, even though they are far more secure than paper checks.

Ultimately, as AI-driven security measures, real-time rails and instant payment networks continue to mature, the need for paper checks as a business payment tool is rapidly diminishing. For companies still reliant on checks, the time to transition is now. The longer businesses wait, the greater the risks they face in an evolving financial landscape where fraudsters are already a step ahead.

Corpay Keeps Focus on Cross-Border and Corporate Payments Corpay Keeps Focus on Cross-Border and Corporate Payments

Corpay Keeps Focus on Cross-Border and Corporate Payments Despite Macro Turbulence

Corpay, earnings, b2b payments

As the global transportation and logistics sectors navigate economic uncertainty, rising fuel costs and increasing regulatory pressures, fleet managers are reevaluating their operational strategies.

The focus is shifting toward efficiency and cost savings, making payment and expense management a critical component of modern fleet operations. That was what Corpay executives told investors on Wednesday’s (Feb. 5) fourth quarter 2024 earnings call. And it’s good news for them.

“The only thing that has changed since our last call is that the macro has gotten a lot worse … our core businesses have remained just as strong,” CEO Ron Clarke said.

Still, a combination of FX headwinds and a weaker international currency environment clipped around $20 million from print revenue, though a favorable tax rate provided a counterbalance, he added.

Despite external pressures, Corpay’s Q4 results showcased the company’s ability to maintain stability and even drive growth in turbulent conditions. For Q4 2024, Corpay reported revenues of $1.03 billion, a 10% increase year-over-year, with organic revenue growth reaching 12%. Adjusted net income rose 18% to $383 million, while adjusted EPS climbed 21% to $5.36.

Key Growth Segments: Corporate Payments Leads the Way

Corpay’s Corporate Payments division was the standout performer, growing 26% in Q4 and 20% for the full year. This growth was fueled by strong demand for accounts payable (AP) automation and international payment solutions. The company secured a major enterprise AP client, marking its expansion beyond the mid-market segment into large-scale corporate accounts.​

“We primarily compete with banks, which control over 90% of international payment flows,” Clarke said. “But our superior technology and proprietary network give us a strong edge in this market.”

Corpay remains active in M&A, with plans to further expand its corporate payments business. The integration of GPS Capital Markets and Paymerang is well underway, and both deals are expected to add $0.50 in cash EPS accretion in 2025​.

Corpay’s Vehicle Payments segment showed mixed results, with Q4 organic revenue up 8%, improving from 4% in Q3. Growth was primarily driven by increased adoption of digital vehicle payment solutions in Brazil, where the company has been expanding aggressively. Insurance-related revenues in the region rose over 130%, and Corpay sold nearly 300,000 vehicle insurance policies in Q4 alone.

Read more: Corpay to Acquire Brazil-Based Gringo to Expand Vehicle Payments Business

The company also acquired Gringo, its second vehicle payments acquisition in Brazil, expanding into the car debts payment market.

“This gives us entry into a huge Brazil payments TAM, approximately three times the size of our toll TAM, and very early days in terms of penetration,” Clarke noted.

PayTechFocus Intelligence’s “How the World Does Digital” report surveyed 67,000 consumers across 11 different countries. It found that Brazil was far ahead of all of them — including the United States — in digital engagement. Drilling down into the results, in 2023, 66.8% of Brazilians used mobile banking apps on their phones at least once a month, and 46.8% used these apps at least weekly.

Corpay is also focusing on cross-border payments. Revenue for that segment jumped 20% year-over-year, driven by 43% sales growth in Q4. Corpay is aggressively expanding its cross-border solutions, leveraging a proprietary network that allows it to compete effectively with banks, which still control 90%+ of international payment flows.

Fluctuating fuel prices continue to be one of the most significant challenges for fleet operators. Companies are deploying fuel hedging strategies and data-driven purchasing decisions to mitigate volatility. Corpay offers solutions that provide detailed fuel pricing insights and analytics, enabling fleets to make smarter purchasing decisions and reduce overall fuel spend.

Ultimately, Corpay’s 2024 results highlight a company firing on all cylinders, with record adjusted earnings and a rapidly expanding corporate payments business. However, macroeconomic headwinds — particularly foreign exchange volatility — are expected to weigh on 2025 performance.