Why Cheques are Obsolete
The percentage of people using cheque books in the UK has dramatically declined in the last 20 years, dropping 79% in regular use, especially now that cashless payment options like contactless payments, bank transfers and mobile banking are the primary choice for transactions and the norm in modern society. A majority of the population is embracing technology and internet, something cheque books simply cannot keep up with.
So then with all the evidence and figures thrown about as proof of how redundant cheque books are, why are there still businesses clinging onto them? We ask this question every single time we encounter someone who still carries their dusty ol’ cheque books around with them.
Here’s the truth, cheque books are obsolete! At ClassForKids, we’re working hard to further your understanding on why online payments are the way to go and why cheque books belong in the Victorian era! Here are a few reasons why cheques are now obsolete:
Phasing Out Internationally
According to Market Inspector, in 2005, 40% of the global population made transactions using cheques, but this changed very drastically almost a decade later in 2014 when numbers of cheque transactions reduced to only 8%! That’s crazy! In countries like Belgium, Germany, Switzerland and Sweden, cheque books simply don’t exist any longer! And with the rise and normalisation of fintech in the UK, especially since the nation is one of the leaders in cashless payments, you can understand why cheques are no longer the favourable form of payment. Time to catch up with the rest of the world guys and consider cheque books as relics!
Cheques Are Not Instant
With the lifestyle that we all have today of busy working parents and hustling club owners and coaches, why would you want to go through the labour intensive journey of depositing cheques when you can have everything done conveniently and instantly with the internet? As you know with online payment transactions, any club fees and payment invoices can be transferred instantly to your bank account! It’s not the same with cheques! If you’ve ever had to deal with banking cheques in, you’ll know that you’d have to make time to travel to your nearest bank, deposit it, and wait for it to be processed and cleared by your relevant bank which could take a few days. It’s a time-consuming procedure and one that can be eradicated with online banking.
There’s a Timeframe for Depositing Cheques
Cheques don’t have expirations dates which seems like a good thing, especially if you’ve left a cheque out on your bedroom desk to be deposited but keep forgetting about it because you’re an absolutely busy working person (we know this happens to many of you). But for your information, did you know that banks have a common practice of rejecting cheques that are over 6 months old? Yes, so if you don’t bank that cheque in, you risk losing the money you rightfully should receive. This is just the bank’s formality to protect the person who signed the cheque in the first place but honestly, this is all unnecessary mental load. You shouldn’t have to worry about remembering to deposit a cheque anymore when things now can be done in an instant!
(Source of image: This Is Money)
Everyone is on their Smartphones!
In the last decade, the number of people relying on their smartphones to fulfil their daily tasks has sky rockets! According to The Telegraph, in 2008 only 17% of people from the UK used their smartphones, this percentage has increased to 78% in 2018! Almost 5 times more people are now relying on their smartphones and spend literally 24 hours from their week on it. So if you’re a forward-thinking and clever club owner, you can understand why adopting the use of online banking is so much better than using cheque books! The numbers don’t lie!