As cheque usage in Australia falls by 14% in one year, some commentators are asking whether the country will join others around the world that are looking at phasing out their usage altogether.
While cheques have fallen from favour, card payments and direct debits have gained traction.
Between 2002 and 2014, cheques saw a 71% decline. However, they are still used for property settlements and major business payments, according to the Australian Payments Clearing Association (APCA).
As a result, banks are unlikely to cease from accepting cheques as a payment method in the foreseeable future, says APCA.
“It’s unlikely that in Australia we’re going to have a sort of hard stop. That’s been talked about in various countries around the world that perhaps didn’t have as strong a tradition of cheques as we do where they have actually turned the cheque system off,” said chief executive Chris Hamilton.
“What’s more likely to happen is if people want a cheque book then they’ll have to find an organisation that wants to supply that.”
He added: “Older people are much more likely to use cheques than younger people. What the most recent figures show us is that cheques are falling out of general ordinary everyday use quite quickly.
“Cheques reached their sort of high point in the mid-’90s and they’ve been in decline ever since. The first part of that was quite slow but I think now we’re seeing the volumes of them dropping off.
“So I expect that within the next few years it’ll be quite rare to see a sort of cheque in everyday ordinary usage, although they will still be used for specific types of transactions.”
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
Tim de Knegt, strategic finance and treasury manager for the Port of Rotterdam, discusses how he is using blockchain, the challenges he will face in his role of treasury over the next 12 months and the advice he would give to someone starting out their career in treasury.
Treasurers are more interested in cross-border payments and automation than real-time payments, as they are consistently asked to do more with less, argues Rick Burke, head of corporate payments at TD Bank in an exclusive interview.
With rising interest rates being a hot topic at this year’s AFP conference, many treasurers were discussing how they can structure their ... read more