Cheques to be replaced by Faster Payments

by Richard Kilner

Story link: Cheques to be replaced by Faster Payments

This month marks the one year anniversary of the Direct Corporate Access (DCA) to the Faster Payments Service (FPS).

More corporates are contemplating using the FPS to replace the more traditional payment system.

Experian Payments Product Manager Norman Taylor has stated that large British corporates are already planning for the end of cheque clearing in 2018, at which point banks may be able to take advantage of the situation by offering new payment systems.

Research by Experian suggests a strong correlation between using cheques frequently and interest in FPS, with large numbers of insurers and utility firms still using cheques in large numbers.

The research also revealed that 80% of other firms expected the removal of cheques to benefit their business, often by enabling greater efficiency.

Taylor warned that although 2018 might seem far off UK companies need to consider their plans now to be prepared in time.

The usage of cheques has been falling sharply in recent years, and earlier this year a Treasury Committee enquiry was launched to evaluate the impact of the abolition of cheques.