Absa Group, a Pan-African bank, is expected to become the first bank to phase out cheques as a means of payment by the end of 2020.
The move has been attributed to declining cheque volumes as very few customers still use cheques to pay their bills.
While Absa will continue to honor all third-party cheques deposited for the foresseable future, the bank says it will stop issuing cheques as there is a general acknowledgement that the industy sunset is imminent.
Cheques are one of the oldest recognised payment instruments globally, including in Africa, and were historically widely used. However, with instantaneous digital payment methods becoming increasingly popular, cheque usage has been declining. Compared to a decade ago, cheque volumes have fallen approximately 80%.
For many in the crypto space, this inevitable move further cements the transition from traditional payment and monetary systems to modern digital alternatives that are safer, convenient, and more efficient than cheques, first seen with mobile digital payments, and soon, in cryptocurrency payment methods.
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