Photographic cheque cashing to bounce payment into digital age
CHEQUEHOLDERS will soon be able to cash their payment almost instantly by taking a photo on their smartphone and sending it to the bank.
The government’s Small Business, Enterprise and Employment Bill will allow banks to process cheques using “digital imaging” technology for the first time.
As well as removing the hassle of a visit to the bank, the new scheme is expected to allow cheques to be cleared in two days, instead of the current six.
The system has proved popular in the US over the past decade, and Barclays has trialled it in the UK.
Cheques remain popular, and were used in £840m worth of UK transactions in 2012.
Economic secretary to the Treasury, Andrea Leadsom, said: “Key to the government’s long term economic plan is building stronger and safer banks that customers can trust.”