Cheque payments are rapidly becoming obsolete

The use of cheques is continuing to decline in South Africa as customers move to digital payments, according to Kenneth Matlhole from FNB Business.

“Over the years, the growing usage of electronic payment methods, high expenses, inefficient processes, and vulnerability to fraud have been key contributors to the global decline in cheques usage,” said Matlhole.

“In addition, cheques do not offer users the convenience and relative security provided by digital payment solutions.”

He added that banks should educate customers about the benefits of more modern payment systems to assist with the migration away from cheque payments.

Financial institutions provide a number of incentives to encourage customers to use using digital payment channels, as digital payments cost much less to process.

“The universal shift towards digital payments is rapidly emerging across societies and in markets such as the United Kingdom, we’ve seen dedicated working groups tasked with fact-finding around the future of cheques versus digital payments,” said Matlhole.

“We are also on the same mission to understand our customers’ needs and how we can help in adopting alternative payment methods.”

The graph below shows cheques usage figures, as monitored by PASA.

Cheque volumes FNB

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Cheque payments are rapidly becoming obsolete