Xero US Executive Targeted Paper Cheque Usage

Matan Bar argued that the reliance on paper cheques hinders small business efficiency within the United States.

Updated on Sept. 20, 2026 in Financial Services

Isometric editorial illustration featuring a metallic stamp and digital device, representing the shift from manual to electronic financial systems. — Xero US CEO Matan Bar is pushing for a widespread transition away from traditional paper cheques in favor of more efficient digital payment systems for small businesses. AI Illustration. Upload story photo >

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Do you still find paper cheques to be a necessary payment method for your business?

Xero US chief executive Matan Bar sought an end to paper cheque usage for small businesses on September 20, 2026. He noted that the United States financial system lags behind other developed markets in digital payment adoption.

Why it matters

The persistence of legacy payment methods can impede productivity and cash flow management for small enterprises. By advocating for digital alternatives, industry leaders hope to modernize business operations across the country.

The fragmented United States financial system consists of more than 7,000 individual banking institutions. Experts believe this high number of entities contributes to the slow transition away from traditional payment methods like paper cheques.

The players

Matan Bar

He serves as the chief executive of Xero US and has been a vocal proponent of modernizing small business financial systems.

Xero

This global technology company provides cloud-based accounting software for small businesses and their advisors.

Melio

This digital payments platform specializes in enabling small businesses to pay vendors and manage invoices online.

The details

Matan Bar, the chief executive of Xero US, has highlighted the need for a shift in how small businesses handle transactions. The company has moved to support this goal by acquiring the payments platform Melio, aiming to integrate more efficient digital tools into the accounting ecosystem.

September 20, 2026: The analysis regarding paper cheque usage was published.

Market Landscape

This effort to move away from paper cheques aligns with the ongoing decline of paper-based commercial payment volumes tracked by the Federal Reserve. It marks a push to align the American financial infrastructure with the faster, digitized systems already dominant in other developed economies.

Small business owners may find that transitioning to digital payment platforms like Melio results in faster transaction processing and better expense tracking. This shift could reduce administrative overhead and simplify the manual bookkeeping typically required by traditional cheque payments.

The takeaway

Embracing digital payment platforms can help small businesses streamline their workflows and improve cash flow visibility. Business owners should evaluate their current billing and payment cycles to identify where automation can replace manual paper processes.