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PayPal drops mobile check deposit

By Allison Ross ·
Wednesday, June 18, 2014
Posted: 2 pm ET

More and more banks continue to add mobile check deposit features, but payment service PayPal is going the opposite direction.

© littleny/Shutterstock.comPayPal on June 12 stopped offering the check capture capability to people downloading its PayPal Here app, according to PayPal. Three days later, it stopped allowing current users of the app to deposit checks into their PayPal accounts by taking a picture of the check with their phones.

The discontinuation goes against the grain of the trend in financial services right now.

Mobile remote deposit capture is the "most sought-after mobile banking feature" among consumers, according to a 2013 survey by ath Power Consulting, a financial services research and strategy firm.

Banks are responding to the demand. A study by found that 63 percent of banks offer remote deposit capture, and another 33 percent plan to offer it in the next year.

Indeed, earlier this month, Citizens Bank announced it was launching a mobile check deposits function.

But PayPal, which has had mobile check deposit for several years now, says that "checks have become a less common way to pay for things and many of our customers have either fully moved away from checks or have other ways to pay."

It adds that the discontinuation of mobile check deposit "allows us to focus on our primary mission, creating a truly digital economy -– whether shopping online, paying a friend, or using a mobile device to pay."

Security concerns

Indeed, the use of paper checks has been falling for several years.

Still, mobile check deposit is continuing to grow, and it's prompting questions about fraud and double-cashing of checks.

What do you think of PayPal's decision?

Follow me on twitter for more: @allisonsross.

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March 02, 2015 at 5:41 pm

use Dwolla - paypal is a horrible monopoly and obviously doesn't care about helping customers - dwolla charges 25 cents for any amount of money transferred vs paypal 1.5% - what a joke - and dwolla basically doesn't allow chargebacks. i can't wait till paypal is gone.

Bobby Deal
February 03, 2015 at 8:27 am

Seriously dissapointed. I dont get a lit of checks and in fact discourage them from my customers but once in a while a customer insists. Since I don't drive due to a handicap the loss of this service leaves me high amd dry amd looki g for a ride to the bank to make deposits that before could be made from my desk.

Might be time to start using a different service for my payment services. There was a time when Square and PayPal were the only game in tow. But that is mot the case anymore. There are too many options for PayPal to be going backwards

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