Editor's Note:Chase Gilbert is the CEO and co-founder of Built Technologies, a software company for real estate and construction finance and payments.

Earlier this year, the White House issued a directive that could quietly change the way money moves in the United States: by the end of September, paper checks will no longer be the default method for federal government payments and collections. This decision is based on practical considerations and is long overdue.

Paper checks are costly, slow to process, and insecure. According to the U.S. Department of the Treasury, paper checks are 16 times more likely to be lost or stolen than digital payments. Maintaining the printing, processing, and reconciliation of paper checks costs taxpayers hundreds of millions of dollars annually.

This is not modernization for its own sake, but about building a safer, more efficient, and more accountable financial system—one that can meet the expectations of a digital-first economy. The private sector should take a cue from this.

Despite clear evidence of inefficiency, paper checks remain widely used in business-to-business (B2B) payments. One study shows that 75% of businesses still rely on paper checks, despite the high costs and better alternatives. For many organizations, this is both a risk and a drag on performance that is no longer sustainable.

The core of the problem is inertia: the belief that existing processes are "good enough" or that change is too difficult. However, the longer outdated systems are clung to, the more risks are exposed—fraud, errors, compliance risks, and avoidable delays.

Digital payments are not only faster and cheaper, but also more secure. They leave a clear audit trail, support automated controls, and provide better visibility into the flow of funds for all parties, from CFOs to compliance officers. When implemented properly, digitalization not only moves money more efficiently but also transforms how businesses operate.

We are already seeing some positive signs. In complex and fragmented industries like real estate and construction, digital collaboration platforms are streamlining multi-party transactions and accelerating capital flows. In some areas, the speed and transparency of payment processes have become a competitive advantage.

Now is the time to elevate digital payments from a back-office upgrade to a strategic priority. It is about resilience, risk management, and unlocking capital trapped in uncertain states.

If the federal government—the largest payer in the United States—can move away from paper checks, the private sector can too, not because it is trendy, nor because of digitalization itself, but because it is the smarter way to do business.