Smartphone Scans Could Replace Cheques

Cheques Smartphone ScansUnder new Government proposals people will be able to use their smartphones to make a payment by cheque.

Earlier there were plans of killing of cheques from 2018, but because of a public outcry the plans were cancelled and the Government now describes cheques as a "crucial" part of the British payments landscape.

Somehow, it believes that by bringing them into the modern age, it could reduce the time it takes to process a cheque payment from up to six days to two at the most.

The Government wants to initiate legislation to speed up cheque payments and will think of making the process quicker by allowing banks to use images rather than paper as they do till now. This technology is already in wide used in the US.

"Cheque imaging" does not require a hard copy of the cheque to be present at every stage of the paying-in process. That means that time which would have been spent transferring it between different banks and central clearing depots is cut as well as the overall cost.

Barclays plans to pilot technology early in the New Year to permit people to scan cheques using a smartphone or tablet.

If triumphant, the complete launch of cheque imaging will be rolled out on its mobile banking app for the second half of 2014.

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