Plastic pushes cheques out of the picture

Consumers are increasingly turning to modern banking and payment methods, according to an industry body.

Use of cheques has declined in favour of facilities such as online banking, credit cards and debit cards, UK payments association Apacs claims.

Figures collated by the body show that in 1990, more than 50 per cent of all non-cash transactions involved cheques.

However, in 2006 they accounted for less than one in ten and Apacs predicts they will be used for just three in every thousand non-cash transactions.

Simon Bennett, spokesperson for Apacs, said: “The availability of paying by alternative methods such as plastic cards has grown so dramatically in the same time frame so people find it much easier to use their debit cards than to write a cheque out.”

He added that most people “probably don’t even know when the last time they used a cheque was”.

Later this year, Visa Europe and MasterCard are to introduce a “wave and go” contactless payment system that uses a new kind of debit card.

The system is intended largely for use in transactions with a value of £10 or under and some analysts have suggested it may be the first step towards a cashless society.

© Adfero Ltd

Leave a Reply

Your email address will not be published. Required fields are marked *