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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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December 20, 2014 at 2:39 am

I have been using the Paypal mobile check deposit feature, since it was available, for a 501c3 qualified group that I'm treasurer of. It made it super convenient to handle the 20 or more checks I needed to deposit each month. I'll now be looking for a bank that has this feature. The large balance that was maintained at Paypal, will be moved to that bank.

N. Alston
December 09, 2014 at 1:00 am

Very disappointed. I loved this feature. I turned so many skeptics on to PayPal because of this feature. I just received a small $25 check from a client and wanted to use the check capture feature. Was so shocked to see it gone! Such an inconvenience. Very disappointed PayPal. Every bank has this feature....except you!

Carla S. End
December 06, 2014 at 6:53 pm

I only noticed the check capture feature around May of this year but didn't have a check to deposit until June 16th, four days after they "stopped" offering the service. I was so happy when I first found out about it, and very excited to try it out in June. It was so fast and simple. No more going to my brick and mortar, personal bank to deposit the check there and then transferring it to Paypal. When I went to do a capture a few days ago, I couldn't find the option and didn't find out that they had actually discontinued it until just now when I found this article. What a bummer. I do think that there is a greater call for this service than it appears, based on the number of people that have been utilizing the service before. If I hadn't needed to transfer $ to my daughter, I wouldn't have seen the option and therefore, wouldn't have known of it's existence. I do hope that the outcry of account owner will cause them to rethink this.

December 03, 2014 at 12:25 pm

I don't get checks often, but when I do I want to deposit by smartphone app. Too bad so sad for paypal, I will look for other ways to transfer money.

Ralph Ferro
October 21, 2014 at 6:49 pm

I have about had it with PayPal My friend tied to send me money and PayPal came up with an error. I enter him an invoice. He tried to pay it. PayPal came up with an error.
He sent me a check and I can't deposit it.
PayPal is basically useless.

Connee Gunn
October 17, 2014 at 5:18 pm

Very disappointed at PayPal - this was so convenient to deposit checks into my account and transfer to Bank beings that my nearest bank is 45 miles away . Hate to lose this option .

Lisa Hudson
October 16, 2014 at 11:40 pm

Very disappointed with this decision

Kathryn Murch
August 30, 2014 at 12:05 pm

I only found this because I was trying to deposit a check. They are right people have gone away from checks but not completely and not businesses. That were I usually get them.

August 18, 2014 at 9:12 am

Very frustrated with paypal. Will be looking for alternative. I use check capture with some deposits also. I don't care how technologically savvy you are, some people still write checks. It may go completely away some day but until it does, people will continue to write them. Now I have to deposit into my personal account and than transfer to my paypal account. So ridiculous!

July 31, 2014 at 4:09 pm

I'm disappointed as well. I been using the Paypal check scan service for several years now, and it's the primary reason I keep most of my fund in my Paypal account. I'll be looking for a bank that supports check scanning.

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