Dig­i­tal age set to end reign of the cheque

Townsville Bulletin - - Your money - By An­thony Keane

CHEQUES are con­tin­u­ing their slow march to ex­tinc­tion, but peo­ple have se­cu­rity con­cerns about their 21st cen­tury re­place­ment – on­line trans­ac­tions.

Cheques ac­counted for about 27.6 mil­lion pay­ments a month in 2010, ac­cord­ing to t he Aus­tralian Pay­ments Clear­ing As­so­ci­a­tion, but that fig­ure is down from 71.1 mil­lion in 2000 and 85.2 mil­lion in 1995.

Also, the value of monthly cheque pay­ments has now slipped be­low $ 130 bil­lion, well down on its peak of $549 bil­lion in 1997, the data shows.

PayPal Aus­tralia man­ag­ing di­rec­tor Fr­erk-Malte Feller says e-com­merce is grow­ing from strength to strength and PayPal has had a 25 per cent in­crease in its on­line trans­ac­tions in a year.

‘‘ While the cost and con­ve­nience are huge driv­ers for the up­take in dig­i­tal pay­ments, our re­search shows that 40 per cent of con­sumers con­sider the ‘ pos­si­bil­ity of fraud’ and ‘ pro­vid­ing de­tails on­line’ as bar­ri­ers to trans­act­ing on­line.’’

He says the in­dus­try needs to con­tinue to de­velop se­cure pay­ment so­lu­tions across on­line, so­cial net­works and web-en­abled mo­bile de­vices.

‘‘ The cheque will con­tinue to play a role for Aus­tralian con­sumers and small busi­nesses, ru­ral busi­nesses and el­derly Aus­tralians,’’ he says.

‘‘ How­ever, in­no­va­tion in dig­i­tal pay­ment plat­forms con­tin­ues, par­tic­u­larly in the ar­eas of pri­vacy and se­cu­rity.

‘‘ The fu­ture will be dig­i­tal and cheques will be one of the first tra­di­tional pay­ment meth­ods to be­come ob­so­lete.’’

In­fo­choice. com. au fi­nan­cial ser­vices an­a­lyst David Lalich says elec­tronic pay­ments will con­tinue to grow strongly at the ex­pense of cheques.

‘‘ Maybe the next gen­er­a­tion won’t even know what a cheque is,’’ he says.

‘‘ It’s the older gen­er­a­tion hold­ing on to cheques.

‘‘ They . . . will con­tinue to use them be­cause of the per­cep­tion of se­cu­rity is­sues around elec­tronic pay­ments.’’

How­ever, in many cases banks will re­fund any money con­sumers lose through on­line fraud, Mr Lalich says.

Some fi­nan­cial in­sti­tu­tions use this pro­tec­tive stance as a mar­ket­ing tool.

‘‘ If any­thing does hap­pen re­gard­ing fraud the bank will take care of it,’’ he says.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.