Payments Council (PC), the organisation that sets strategy for UK payments, has agreed to set a target date of 31st October 2018 to close the central cheque clearing. PC was faced with the choice of either managing the decline to ensure that personal and business cheque users have alternatives easily available to them or to stand back and let the decline take its course.
The decision follows 18 months of extensive consultation and research to understand fully where and when customers still use cheques and where alternatives need to be developed. Feedback from groups representing consumers showed that the vast majority accept that 2018 is a feasible end date but that many expressed concerns about viable alternatives being in place and being accessible to all those who currently use cheques.
Over the next nine years the PC will seek to promote and explain existing alternatives and where innovation and new options are required to ensure that they are put in place.
Paul Smee, CEO of PC, said: “Customers aren’t likely to see any immediate change as the target date is still a long way off. This announcement marks the start of extensive work that we need to do to ensure that everyone has a viable alternative, should the cheque clearing close. We aim to be very transparent and we will continue to consult fully with all interested parties.
“There will be a critical review in 2016 when the Payments Council will decide whether sufficient change has occurred against agreed published criteria, to press ahead to do away with the cheque in 2018. There are many more efficient ways of making payments than by paper in the 21st century, and the time is ripe for the economy as a whole to reap the benefits of its replacement.
“We have already done a significant amount of work, research and consultation which has convinced us that 2018 is achievable. But the real challenge lies ahead if we are going to be comfortable to wave good-bye to the cheque, which undeniably occupies a unique place in British culture. The payments industry will have to react positively and take the lead on delivering solutions which suit all their customers. I know that the Payments Council Board will pay particular attention to check that the needs of disadvantaged consumers are addressed.”
