Young people abandon cheques
Published On 5 September 2007
The use of debit and credit cards is killing off the cheque, new research suggests.A study by Defaqto found that 53 per cent of people aged between 16 and 24 never write cheques and a further 33 per cent write them less than once a month.
These figures back up earlier findings from the UK's payment association, Apacs, which showed that cheque volumes dropped eight per cent in 2006.
Defaqto's David Black said that a culture where people use debit and credit cards was rapidly causing the demise of the cheque.
He added: "We've already seen a number of high-profile retailers announcing that they will no longer accept cheques and, as the survey has revealed, the future for the cheque is looking bleak with the younger generation increasingly turning their backs on them."
Mr Black added that it was likely that banks might start charging people to use cheques in the future.
"Cheques are relatively costly for providers to process and, in the not too distant future, people who write them are likely to be charged for the privilege of doing so," he explained.
The findings found that people over 55 were the most likely to still use cheques on a regular basis.
Figures from the British Bankers Association indicate that credit card spending in the UK dipped by £100 million in July.
