Call to end use of cheques by 2016

Cheques should be no longer usable by 2016, according to Pat McLoughlin, chief executive of the Irish Payments Services Organisation.

This would give retailers and consumers eight years to put in the necessary structures to adopt electronic forms of bill payment, he said, speaking at the group’s annual conference in Dublin.

Mr McLoughlin said the country’s consumers and business owners were among the most inefficient in Europe when it came to embracing electronic payment methods.

It is estimated that this country’s reliance on cheques and cash is costing the economy up to €1.4bn annually and that the cheque is now an out-of-date form of payment and must be axed to ensure a more efficient payments system.

Mr McLoughlin said national economic competitiveness could be greatly enhanced by a shift to electronic payments.

At present, this country is one of the last few significant users of cheques in Europe.

Our average cheque usage is about double that of the EU average with cheques accounting for more than 75% of all non-cash payments in value terms.

“While there is an abundance of electronic payment options available to Irish customers, Irish domestic payment behaviour patterns continue to be heavily reliant on cash and cheque options which are the most costly and inefficient,” said Mr McLoughlin.

The chief executive of the Irish Payments Services Organisation called for a deadline to eliminate cheques so as to make them obsolete by 2016.

An Irish Payments Services Organisation survey revealed 73% of the population now own a Laser card, which is a 40% rise on card ownership since 2006.

However, 69% of consumers stated they would increase their card usage if the minimum spend requirement was removed by retailers.

Article courtesy of The Evening Echo