The humble paper cheque may be on the verge of extinction in South Africa, as banks begin moves to phase out the age-old method of exchange in favour of cards and digital payment mechanisms.Major banks Nedbank, FNB and Absa have already announced plans to discontinue the use of outdated cheque payments beginning in January of next year.
The Payments Association of South Africa says that it anticipates that even more banks will be issuing similar public announcements in the next few months.
The decline in cheque usage is being exacerbated by the coronavirus outbreak, Pasa acknowledges.
“Following the Covid-19 pandemic, the physical contact required to issue, collect, and process cheques, makes it a less desirable method of payment for consumers and businesses alike,” says the payment management body. “Since the start of the pandemic in South Africa, there has been a massive decline in cheque usage.”
TSG has a pulse on the global payments landscape.
Interested in learning about Australia? Click here to download our Payments in Australia eReport for free!
Want payments insights from across the globe?
Check out our most recent article “Exploring Disparities Across the International Payments Landscape” that reveals insights from TSG’s ongoing Country Series, a growing collection of eReports that analyze the payments landscape of various countries across the globe.
Gain access to this exclusive collection and more through TSG’s eReports subscription.
The post South African banks prepare to phase out paper cheques appeared first on The Strawhecker Group.