Irish are tops for cheque usage

IRELAND has the highest levels of cheque and cash usage in the EU, according to a report produced yesterday

The commission estimates that a more coordinated approach to payments infrastructure could deliver annual cost savings to the economy of up to 420m.

Cheque payments in Ireland represent 56% of total cashless transactions by value, or 33% by volume. This compares with EU averages of 7% and 16% respectively. Cash in circulation outside of the credit institutions in Ireland accounts for as much as 22% of the money supply here compared to an EU average of 10.9%, and only 5% in Britain.

The study, prepared by Accenture, points to a strong economic rationale for a cohesive Government strategy to coordinate the delivery of a world-class payments environment in Ireland.

The report argues that the development of a coordinated strategy could, with the minimum of investment, generate significant shared cost savings across the banking, corporate, SME and government sectors.

The report argues that the development of a robust and ubiquitous e-enabled payment infrastructure would strengthen the quality and sophistication of the micro-economic business environment and deliver a significant contribution to national competitiveness.

“This is a win-win proposition for Government,” according to ISC chairman Dr Danny O’Hare. The ISC is calling on Government to:

Take a forward-looking view on the delivery of a world-class payments environment as source of innovation-led competitive advantage.

Quickly establish a point of ownership within Government for taking this agenda forward and aligning strategic objectives.

Ensure that this point of ownership is closely aligned with policy responsibility for financial regulation, the banking sector, and public sector financial management systems.

Engage quickly with the key stakeholders in the public and private sectors to develop a shared strategy, including the development of an appropriate governance model and a roadmap for moving forward.