Absa Group Limited formerly known as Barclays Africa Group Limited will be discontinuing the use of cheques as a method of payment by the end of 2020 as a result of the decline in its use in recent times.
It will however, still honour all cheques from third parties.
An article on Money Web (www.moneyweb.co.za) made it known that Absa Group Limited will be discontinuing the method of payment and focusing on growing its digital payment methods.
And excerpt from the article read, “…Absa made a business decision to exit cheques as a payment instrument by the end of this year.”
According to Money Web, the decision to phase out cheques is also a risk management initiative. Especially considering how cheques need validation and verification sometimes over long periods of time which sometimes result in fraud.
In July 2020 the financial institution stopped the issuance of cheque books to its clients. The decision was also influenced by the 80 percent decline in the first de of cheques over the past 10 years.
All Absa Bank clients will now make use of its variety of digital platforms like internet banking, chat banking and USSD for all their transaction needs.
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