The banking industry is set to review the long-term future of paying by paper as the chequebook's days are numbered while PINs continue win over pens.

Cheque numbers have been steadily declining for more than a decade. The Reserve Bank of Australia figures show that cheque use in Australia has declined by more than35 per cent in the last four years.

The Australian Payments Clearing Association (APCA), which is made up of banks and credit unions, today announced a public consultation process to gather community views on the future direction of cheques in Australia.

APCA is undertaking the consultation process to ensure that as cheques become scarcer and inevitably more difficult to use, community payment needs continue to be met.

Recent research commissioned by APCA found that 75 per cent of consumers do not use cheques at all. However, 5 per cent of Australians believe they would have a major problem finding an alternative to using cheques. These consumers are predominantly the elderly rurally isolated and unwaged.

APCA CEO Chris Hamilton said that APCA is keen to hear directly why cheques remain important for these sectors of society and for some not-for-profits and businesses.

“Cheques are clearly in irreversible decline. The consultation process will help us identify why certain consumers and businesses are still using cheques when other safe, efficient and cost effective payment options are available. In some cases consumers may not be aware of the alternatives, or cheques may be the only payment method accepted by some businesses.”

As part of the consultation process, APCA will be talking to consumers, users and acceptors of cheques both large and small across Australia and those who represent their interests. These views will inform industry policy on the future direction of cheques in Australia.

“Convenient and cost-effective payment options should be accessible to all Australians, irrespective of age, economic status or location. As the payments system continues to evolve, we need to identify and deal with any barriers to using safe and efficient electronic payment options,” added Mr Hamilton.