New Zealand is set to follow in the footsteps of other major markets as it plans to commence a review into cheque usage later this year in a bid to manage its decline.
Payments NZ (PNZ), which took over responsibility for the industry rules and standards – previously the domain of the New Zealand Bankers’ Association, is currently considering a proposal to undertake an initial study, which if approved, will aim to understand how cheques are used in the country.
The initial study will involve gathering data and consulting with the public and other stakeholders to identify their views.
“It is time to undertake an orderly review of cheques in this country to determine the best way to manage the decline and ensure our payments system continues to be efficient and meet the needs of users,” said PNZ’s CEO Steve Nichols.
“PNZ is therefore considering a process to seek industry, public and interest group views on the place of cheques in New Zealand, before making any decisions about the future of cheques.”
According to the PNZ, paper-based payment instruments usage in New Zealand – namely cheques – has been declining at an annual average rate of 9% over the last 8 years.