RDP 2023-08: The Evolution of Consumer Payments in Australia: Results from the 2022 Consumer Payments Survey 7. Cheques

Just seven personal cheque payments were recorded in the 2022 CPS, accounting for only 0.1 per cent of the number of payments. This was down from 1.2 per cent of payments in 2007.

As in previous surveys, the use of cheques was heavily concentrated among older Australians. The share of respondents over 65 that had made a cheque payment in the past year was nearly triple that of those under 65, at 14 per cent versus 5 per cent. One-quarter of respondents aged 65 and above owned a cheque book, while less than 2 per cent of respondents under 30 had a cheque book (Figure 33).

Just 1 per cent of respondents said they would experience a ‘major inconvenience’ or ‘genuine hardship’ if shops and businesses stopped accepting cheques for payments. The Australian Government has outlined plans to wind down the cheque system by 2030 (Australian Government 2023). The results from the 2022 CPS suggest this will only affect a small share of the population, with this group more likely to be over 65. The widespread increase in card payments seen in the 2022 survey shows a large share of older consumers have already adapted to changing payment methods. Nevertheless, the payments industry, including banks, will need to work with cheque users to help them transition to different payment methods.