Payments News Desk: February 2026 Edition
A monthly look at the latest payments news, including B2B payments innovation, BNPL trends, and the decline of paper checks.
Welcome to Payments News Desk, a brand-new monthly blog series from TRX Services, spotlighting the latest developments in the payments world. Each month we’ll break down key trends and stories shaping how businesses and consumers pay, get paid, and manage money. For our first installment, we're looking at three timely news items that highlight rapid shifts in both business and consumer payments — from changing consumer financing habits to digital transformation in B2B and the near-total retirement of paper checks in Germany.
1. Buy Now, Pay Later Expands into Everyday Expenses
"Buy now, pay later" (BNPL) and related installment payment offerings are evolving beyond one-off retail purchases, according to a PYMNTS report. What started as a way to split payments for discretionary items like shoes and furniture is now showing up in everyday spending categories including groceries, utilities and travel.
Millennials and "bridge millennials" (older millennials and younger Gen X) are leading this shift, increasingly using repayment plans — whether BNPL or credit card installment programs — to smooth cash flow as part of regular budgeting.
PYMNTS found that over 4 in 10 millennials (45%) and bridge millennials (42%) used credit card installment plans in the past three months, and one-quarter of each group also relied on BNPL.
For banks, merchants, and FinTechs alike, this widening use case signals a deeper integration of point-of-sale financing into household money management.
2. B2B Payments: Checks Give Way to Virtual Cards and ACH
A recent PYMNTS article explains why businesses are increasingly abandoning paper checks in favor of digital payment methods like virtual cards and ACH (Automated Clearing House). After years of inertia — where buyers stuck with checks because suppliers accepted them, and suppliers saw little incentive to modernize — momentum is building for digital adoption.
Major players including American Express, Visa and Truist are launching new tools to automate receivables, offer flexible payment options, and empower small and medium-sized businesses ("SMBs") with modern payment infrastructure, giving finance teams more control over transaction speed, cost, and data.
The shift isn't just about replacing checks — it's about using payments as strategic levers to improve cash flow, boost supplier relationships and integrate payments more closely with procurement and treasury systems. The result is a more agile, data-driven B2B payment environment.
3. Germany Sets a Checkless Future by 2027
In a dramatic move that further underscores the global decline of paper checks, PaymentsJournal reported that Germany has announced plans to eliminate check processing entirely by the end of 2027. Once a staple of business and consumer payments, checks now represent only a tiny fraction of cashless transactions in Germany, and the Bundesbank — the nation's central bank — is winding down the infrastructure that supports automated check clearing.
Instead, electronic alternatives like SEPA (Single Euro Payments Area) transfers — including real-time payments — have taken hold as the dominant rails for non-cash payments. The transition reflects broader trends toward digital payments across Europe and offers a glimpse of what other markets might face as checks become impractical to maintain. Businesses that still rely on checks are being urged to adopt faster, digital methods ahead of the phase-out.
The United States is showing signs of similar change. The Atlanta Fed notes that, from 2015 to 2024, check payments in the U.S. dropped from 6% to 2.5% of consumer transactions.
Conclusion
From boardrooms to grocery aisles and across international borders, payments are evolving fast. Businesses are shedding outdated payment practices in favor of digital rails that improve efficiency and insight. Consumers are redefining how short-term financing fits into their monthly budgets. And entire countries are preparing to retire paper checks altogether. Staying informed about these trends — and the technologies and policies driving them — is essential for any organization seeking to compete and serve customers effectively in 2026 and beyond.
Whether your organization wants to offer virtual cards, ACH, consumer financing, or other financial solutions, TRX Services can help. Contact us today for more details.
We hope you enjoyed this first edition of Payments News Desk. Be sure to check back each month for more insights and analysis from the ever-changing payments landscape.
