As consumers move away from checks and toward digital, legal payouts face a “speed and transparency” reckoning.
Americans rarely write checks
The trend: Use of paper checks keeps falling. Federal Reserve researchers and mainstream business press note Americans now rarely write checks, while retailers drop acceptance and fraud concerns rise.
V.law debit card launches for settlement payouts
Expectations are shifting
Client expectations are shifting: Legal clients and payees increasingly expect online payments and status visibility—a pattern echoed in legal-industry research on digital payments and operational efficiency (including for solo and small firms). Clio+2Clio+2
Inclusion matters: Roughly 4.2% of U.S. households were unbanked in 2023 and 14.2% underbanked, per the FDIC. Settlement programs that support wallet, card, or simplified bank options reach recipients who might otherwise face delays or check-cashing fees. fdic.gov+1
Compliance isn’t optional: As firms digitize payouts, IOLTA and trust-account rules remain the guardrails. Bar resources emphasize rigorous recordkeeping and segregation of client funds—digital does not mean “less compliance,” it means “better evidence.” americanbar.org+1
Bottom line: The market is moving away from paper and toward instant, trackable, audit-ready disbursements. Firms that align payout operations with modern rails and trust-account best practices will set the standard clients now expect. atlantafed.org+2nacha.org+2
“Settlement programs that support card, wallet or simplified bank options reach recipients who might otherwise face delays or check-cashing fees.”