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The global digital check scanning solutions market size was USD 867.2 million in 2020. The market is expected to grow from USD 906.1 million in 2021 to USD 1,341.4 million in 2028 at a CAGR of 5.8% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with digital check scanning solutions witnessing a positive impact on demand across all regions amid the pandemic. Based on our research, the global market exhibited a substantial growth of 4.0% in 2020 compared to the average year-on-year growth during 2017-2019. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
The payment is scanned by the check scanner, which converts both the back and front of the paper check into an authentic and legitimate digital image. The banks use a digital check scanner that uses magnetic ink character recognition to read checks (MICR) data. The MICR scans the information on the check line that includes the check number, bank account number, and routing number. To minimize total processing time and improve the online banking experience for customers, banks are progressively employing cutting-edge technological solutions. A digital check is electronically sent to the bank to be cashed faster than a paper check. Check deposition devices can be linked to digital check scanners to scan deposited checks and create receipts, which could accelerate the market.
Digital check scanning technologies help to avoid forgery by verifying and authenticating each check step. Several financial institutions are changing checks into digital formats in their locations to receive electronic payments.
Growing Investment in BFSI Sector to Deliver Digital Check Payment Solutions amid Pandemic to Boost Market Growth
The COVID-19 pandemic had caused disaster in the economy in every sector. Many people were stranded at home and unable to move out owing to restriction measures imposed by the governments as a result of the COVID-19 situation. The governments had also shortened bank operation hours, affecting consumer cash withdrawals and transactions. Digital check scanning technologies assist both banks and customers. Since clients prefer digital transactions over conventional methods, digital check scanners are proving to be more secure. This feature is boosting the market for during COVID-19. For instance,
Further, as per Mark Forbis, a former chief technology officer in the payment system industry at the U.K. check imaging seminar in November 2020, after about couple of months of the pandemic, the enrollment volume for remote deposit capture (RDC) increased by 100% at the banks.
However, due to the pandemic, the production of digital check scanners was temporarily halted, disrupting supply and demand. As the supply of digital check scanners increases in the near future, it shows that the pandemic would drive the market.
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Rising Demand for Remote Deposit Capture to Boost Market Growth
Remote Deposit Capture (RDC) is a service that enables customers to scan, examine checks and send the digital copies and ACH data to a bank for depositing and processing.
Consumer expectations in terms of banking have shifted dramatically due to Remote Deposit Capture (RDC). According to a June 2020 report by BLM Technologies dba Teksetra, the adoption of this user-friendly financial platform has accelerated since 2009, despite the fact that it was slower during its original authorization in 2004 and 2009.
Further, according to June 2020, a report by Bank Administration Institute and BAI Center, the COVID-19 increases reliance on RDC. It was found that the customers' behavior has changed dramatically at all of the surveyed branch banking and institutions as if they have been severely restricted. As a result, RDC has been brought into the mainstream as a method of dealing with transactional load.
Rising Adoption of Digital Payment Processing to Accelerate Market Growth
Financial institutions and banks are increasingly adopting digital payment systems for payment processing, which is expected to drive the market. In the future, the digital check scanner market is expected to grow at a steady rate. Despite the availability of several online transaction platforms, a major chunk of business currently relies on checks. This element necessitates using a digital check scanner to clear checks swiftly and efficiently while avoiding human error. The check scanner is widely used by financial organizations, banks, and credit unions to increase productivity and profitability in an automated manner. For instance, according to a 2021 report by PWC - a global study of banking, fintech, and payments companies, 89% indicated that the trend toward e-commerce would continue to grow, necessitating major investment in digital payment solutions. Furthermore, they stated (97%) that there will be a shift toward more real-time transactions in the coming years.
Fintech organizations have increased their range of remote and accurate check processing systems due to continued technical improvements in data processing systems and digital system connectivity. These advancements will open the way for new digital banking alternatives to evolve. As a result, it is expected to boost the market.
High Initial Costs of the System to Limit Market Growth
The digital check scanning solutions are cost-effective, but the initial capital cost required to adopt check scanners is high. Further, owing to changing consumer payments preferences and the introduction of online banking methods, the return on investment (ROI) could not be projected for the check scanning solution. Consumers' rapid adoption of digital payment methods restricts retailers and small and medium-sized enterprises (SMEs) from implementing digital check scanners. The high cost of smart technology-enabled check scanners restricts the adoption of check scanning solutions across small financial institutions and credit unions. However, cost-effective, affordable, and advanced check scanners such as remote deposit scanners are likely to overcome this restraint and create market opportunities for digital check scanning solutions in the coming years.
Based on the component analysis, the market is divided into solutions and services.
The solution is expected to hold the largest digital check scanning solutions market share during the forecasted period. The need for digital scanning solutions is growing in response to the major shift towards digital payment transformation. The financial sector businesses are actively investing in new technologies to provide digitalized solutions to customers. Also, the vendors are continuously offering new solutions to the industries to install the platform. For instance, In October 2021, Digital Check launched the TellerScan TSX40 Check Scanner. It is a multi-feed check scanner that combines the finest design components of the SmartSource Elite series scanners and TellerScan enabling light and medium-duty image capture in retail banking and commercial applications.
Based on by type analysis, the market is divided into single feed check scanning solution and multi-feed check scanning solution
During the forecast period, the multi-feed check scanner is estimated to hold the highest market share. These sorts of check scanners are useful for businesses that process checks on a regular basis. A stack of checks could be readily pushed into the input area of a multi-feed scanner, and the scanner will process them precisely. The advanced digital check scanning solutions enable customers to scan and process checks electronically. The growing small and medium-sized enterprises, educational institutions, real estate offices are adopting small and affordable single feed check scanners to process checks from a remote location. Thus, a single feed check scanning solution is expected to witness significant growth.
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Based on industry analysis, the market is divided into banks, financial institutions, credit unions, government and non-profit organizations, and others such as real estate, retail, and healthcare.
The banks, financial institutions, and credit unions sector is expected to lead the global digital check scanner market during the forecast period. Since banks analyze, process, and clear a large number of checks on a daily basis, thus they are installing scanners at various branches to shorten the overall time it takes to clear a check and comply with government guidelines encouraging the use of digital checks. The rising adoption of digital solutions across the banks and financial institutions is likely to fuel the adoption of digital check scanning solutions. The rising digital transformation across the government and public sector is expected to boost the market growth.
North America Digital Check Scanning Solutions Market Size, 2020 (USD million)
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North America to hold the largest market share during the forecast period due to the presence of leading financial institutions, banks, and major market players such as ARCA Tech Systems, LLC, Digital Check Corp, Kodak Alaris, HP Development Company, L.P., RDM, (A Deluxe Company), Epson America, Inc. among others. Technological advancement among industries such as real estate, retail, hospital, and others boost the adoption of remote deposit capture to improve productivity and save travel time to visit banks.
Europe is likely to exhibit significant growth during the forecast period. Financial institutions such as HSBC bank offers digital check scanning solutions to the U.K.-based customers. Further, market players such as Canon Europe, Panini S.P.A., and others in the region are introducing advanced solutions to provide highly efficient scanners to customers. Thus, the introduction of technologically advanced solutions and digitalization across the banking and financial institutions is likely to fuel the market growth in this region.
The Asia Pacific is expected to witness remarkable growth during the projection period. The rising digital transformation across the banking sector due to the COVID-19 pandemic is likely to drive the adoption of digital check scanning solutions across the region. The rising government investments and initiatives for digital transformation across the countries such as India, Japan, South Korea, and ASEAN, among others, is likely to fuel the market growth. Small businesses, medical offices, real estate offices are adopting advanced check scanning solutions such as single feed scanners, remote deposit capture to process the checks electronically. The rising adoption of check scanning solutions across small and medium-sized enterprises due to affordable prices is likely to fuel the market growth in this region.
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The Middle East and Africa are projected to witness moderate growth, owing to the growing adoption of digital technologies across the industries such as baking, government, retail, and healthcare. The rising investment in fintech companies across the Middle East is anticipated to boost the market growth. South America is expected to grow at a steady pace owing to the rising investment in advanced technology. The South American banks have accelerated digitalization in response to the COVID-19 pandemic, likely driving the demand for check scanning solutions across the region.
Key market players are focused on the development of new technologies in digital check scanning solutions to deliver more innovative solutions to banks and organizations. Also, these organizations are committed to expanding their business globally through a range of strategies, including partnerships, acquisitions, and collaboration.
An Infographic Representation of Digital Check Scanning Solutions Market
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The market research report highlights the leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge of the market.
2017 – 2019
Value (USD Million)
Component, Type, Industry, and Region
The market is projected to reach USD 1,341.4 million by 2028.
In 2020, the market value stood at USD 867.2 million.
The market is projected to grow at a CAGR of 5.8% in the forecast period (2021-2028).
The solutions segment is likely to lead in the market.
The rising adoption of digital payment processing to accelerate digital check scanning market growth is the key factor driving the market growth.
North America is expected to hold the highest market share.
Banks, financial institutions, and credit unions to adopt digital check scanning solutions during the forecast period.
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