The Hong Kong Association of Banks (HKAB) is spearheading an initiative to phase out cheques, starting with a study of 10 industries heavily reliant on this traditional payment method, according to the South China Morning Post.

These sectors include stockbrokers, charities, estate management firms, legal and auditing practices, insurance companies, and small and medium-sized enterprises (SMEs).

The study aims to identify the challenges hindering these industries from fully embracing electronic payments.

HKAB Chairwoman Luanne Lim reported a consistent decline in cheque usage, with an annual decrease of 10-20 percent.

This trend is expected to persist as digital payment options become increasingly prevalent.

To facilitate a smooth transition, the HKAB has commissioned a consultant to work closely with these industries and address their specific needs. A

comprehensive report outlining the findings and proposing solutions is anticipated early next year.

This initiative aligns with global trends, as countries like the UK, Australia, and Singapore are also actively pursuing strategies to reduce reliance on cheques.

Reflecting this shift, recent data reveals a significant drop in cheque usage in Hong Kong.

November saw a 27 percent year-on-year decline in cheque payments, with volumes falling to 4.33 million from 5.9 million in the same period last year.

The value of cheque transactions also decreased by 22 percent to HK$468.54 billion.

Conversely, electronic payments via the Faster Payment System more than doubled to 65.21 million transactions, with the value surging threefold to HK$600.71 billion.

While a definitive timeline for phasing out cheques remains undecided, Lim emphasised that the transition will be gradual and involve extensive consultation with stakeholders to ensure a smooth and inclusive process.

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