Paper checks are still widely used. Electronic checks are also used as a form of online payment. Some banks have the imaging feature for people to deposit checks in their accounts. Also, some businesses will convert a payment made with a paper check into an electronic debit.
Ironically, many are returning to using paper checks and currency for transactions because of all the credit and debit card fraud, such as the current fiasco with Target stores. Seems the old ways are more secure.