Banks plan to phase out cheques

| September 21, 2009 | 0 Comments
”Banks

Brits are snubbing cheques in favour of faster payment methods, new figures show.

Credit cards, debit cards and cash increased their market share yet again in the second quarter, with cheque payments dropping 21% on year.

Statistics from the UK Payments Association show payments on plastic cards rose 3% in the three month period to £95.5 billion.

Commenting on the figures, HSBC spokesperson Tim Pie said cheques will eventually become obsolete.

“The reality of it is that it will reach a point whereby it simply costs the industry too much to maintain the systems to produce, receive, validate and clear cheques,” he said.

The rise of internet shopping and banking has hastened the decline of cheques, Pie claimed.

“We used to always pay by cheque, you’d give your plumber a cheque as he was leaving,” he said.

“Tradespeople are increasingly using their online accounts to receive payments and also to make them themselves.

“That is increasing and as a result, fewer cheques are being used.”

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