Phasing-Out of Paper Based Cheques in the UK Will Benefit Financial Institutions, Individuals and Businesses

Dan Shu, Huawei Luo, Wei Wang

Abstract


Paper-based cheques have been in use for about 350 years. And it has been played a very important role in
people’s lives (Barrow, 2009). While the use of paper based cheques is continue to decline in the world. In many
countries, such as Netherlands and Sweden, people there have already stopped using paper based cheques, or
there are only small amount of people using cheques. This trend also exists in UK. The UK Payments Council
has decided to modernise the payment system and also set a date for the abolition of paper based cheques. The
UK Payments Council claimed that the phasing-out of paper based cheques in the UK would benefit financial
institutions, individuals and businesses. This essay will firstly look at the current situation of the use of paper
based cheques in UK. Following this, it will discuss the alternative payments methods. Then the timelines for
paper based cheques to phase out would be illustrated. Finally, it will discuss the benefits for benefit financial
institutions, individuals and businesses separately.

Full Text: PDF DOI: 10.5539/ijbm.v5n9p217

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International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

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