The future of the humble cheque will be decided by the UK Payments Council, in its board meeting today. The Council will hear details of the future of mobile payments, whereby money can be transferred by using a mobile phone, and the contactless card system.
It seems likely that cheques will be phased out by 2018, with mobile payments taking focus. There is also speculation that the popularity of cash could be reduced as mobile phone transactions become more widely used.
Charities representing the elderly have insisted that cheques should remain available to those who are not happy using new technologies. But cheques are expensive and slow to process, particularly when compared to new technologies offering virtually instant payments.
If the UK Payments Council does announce the death of the cheque, it will be on the condition that suitable alternatives are made available. Many sole traders and small businesses rely on cheques for payment, and in many circumstances the cost of a Chip and PIN machine is too much to bear.
All eyes will therefore be on the banks and payment providers to come up with financially viable methods of easily accepting small transactions.
