Australia's Cheque-Free Future Takes Shape

Australia's shift away from cheques is part of a broader structural change in how money moves through the economy, according to ANZ. In an interview, a third-generation family business owner, Joe, shared his experience with cheque reliance and cash flow issues.

Rising inflation was forcing suppliers to tighten payment terms, putting pressure on Joe's operations. To address this issue, ANZ presented him with a plan to improve cash position through digital payments, including PayID and BPAY implementation, removal of cheques as a payment option, and introduction of a Commercial Card for supplier payments.

Six months later, the results were clear: cash was arriving 10-14 days earlier, overdraft limits were significantly reduced, and weekly branch visits were eliminated. The improved cash flow also enabled Joe to offer an early payment discount of 2.5% to customers.

The shift away from cheques is not unique to Australia; other countries such as New Zealand and Denmark have already phased out cheques. ANZ's General Manager of Transaction Banking, Cosi De Angelis, emphasized the importance of collaboration across banks, businesses, technology platforms, and government to ensure a safe and secure transition.