I live in the US, and I agree with those who say that checks are becoming increasingly rare for actual businesses, like the grocery store or the McDonalds. I tend to use credit cards, debit cards, or cash for everything retail. For something like the grocery store, usually a credit or debit card. For something like a coffee at the local coffee shop, or a greeting card at Hallmark, those little purchases, I tend to use cash.
But I personally choose to pay all of my monthly bills by check. By monthly bills, I mean: rent, cell phone bill, student loan bill, car insurance, cable TV, and maybe something else I'm forgetting. I also make any "payments by mail" by check, such as a medical bill, or a charity donation, or that sort of thing. The reason I prefer it this way is:
1. Instead of automatic withdrawals possibly putting me in the negative, I am always in control of when I send in my payment.
2. I have a paper trail to keep, and have a folder system to organize these receipts.
3. Feels more secure to me.
4. Puts me more in control of the entire process.
I have this feeling that, FOR ME, if bills were being paid online, I could easily lose sight of what was being charged and for how much. I'm in my early 30's, so I'm very proficient with computers, but this is still how I prefer to do my finances.
The other thing to keep in mind is that we on this site are not exactly a representative sample of all citizens. We choose to frequent an online message board for fun. This means that we have computer access and are somewhat comfortable with computers. For people who do not have a home computer, or have one to email but are not generally tech savvy (think elderly people, or lower income people), paying bills online would be hard to impossible.