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

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.