= Operating and releasing mail at reduced production levels 
= No current production
15 Jan The PAPER Act: Striking a Balance Between Digital Push and Consumer Choice
Meeting customer preferences is now a prerequisite to customer satisfaction, which is why businesses are constantly evaluating the best way to manage their transactional documents. While many have adopted offering digital invoices due to their speed, cost savings, and environmental benefits, paper invoices remain a staple in some industries for clients who prefer traditional methods. Striking the right balance between paper and digital invoices is essential for companies seeking to optimize efficiency, improve customer satisfaction, and maintain flexibility. We discussed the importance of meeting preferences when it comes to our communications in our blog Paper vs. Digital Invoices: Finding the Right Balance.
Digital transformation can definitely unlock new value for businesses. However, the shift toward paperless systems has raised significant concerns about choice and accessibility. These issues came to a head following a Citi Commercial Bank’s (Citi) pilot program in late 2023, which reportedly leaned heavily on full digital adoption as a requirement for maintaining access to online accounts. In response, Rep. Michael Turner (R-Ohio) introduced H.R. 6777, the “Protecting Against Paperless and Electronic Requirements Act” (PAPER Act), on December 13, 2023.
While digital transformation offers undeniable benefits—speed, cost savings, and environmental impact, to name a few—there are growing concerns that forcing digital-only options, as in the case of Citi’s pilot, creates barriers to essential financial services for older adults, rural communities, and individuals without reliable internet access.
What is the PAPER Act?
H.R. 6777 aims to ensure that consumers retain the option to receive paper statements from depository institutions and credit unions, regardless of moves towards digitalization. Specifically, the bill mandates that financial institutions offer customers paper statements upon request and prohibits the enforcement of digital statements as a condition for accessing certain services.
Advocates for the PAPER Act emphasize that consumer choice should be a central principle in the financial services industry. By providing both paper and digital options, institutions can foster inclusivity while continuing to innovate.
Critics of the PAPER Act, however, argue that the bill could slow the pace of digital adoption and increase operational costs for financial institutions. Printing and mailing statements require resources, and banks have long pointed to digital adoption as a means of improving efficiency and reducing their carbon footprint. Balancing these operational considerations with the needs of consumers presents a significant challenge.
Current Status and What Works for Your Business
As of January 2025, the PAPER Act remains under review by the House Financial Services Committee. Its journey through Congress will likely be closely watched by financial institutions, consumer advocacy groups, and policymakers alike.
For now, the PAPER Act stands as a powerful reminder that even in an increasingly digital world, traditional methods of communication remain relevant—and necessary—for many consumers.
It is important your third-party print provider can accommodate your needs, whether print, digital, or even a hybrid approach—which makes it possible to opt in for digital invoices while still receiving paper copies for critical transactions. Datamatx is a partner that will listen carefully to your needs to provide the best solution for your business requirements, whether it’s print and mail or electronic bill presentment and payment, or a mix of both.