Cheque volumes fall 80% as S'pore adopts digital payments

They are still used for high-value transactions like property or car down payments, insurance payments

- Sheila Chiang

Writing cheques has become a thing of the past for most people in Singapore as the country increasingly adopts digital payment methods such as PayNow and mobile wallets.

The number of cheques denominated in Singapore dollars declined about 80 per cent, from 61 million in 2016 to fewer than 14 million in 2023, noted the Monetary Authority of Singapore (MAS) in December.

Retail cheques - those issued by individuals - have also declined, said the Association of Banks in Singapore (ABS), without specifying numbers.

But it might be too early to write off cheques altogether, as Mr Kenneth Lee and Ms Belle Toh recently found.

Ms Toh, who is in her 50s, said her condo management wanted a cheque for a security deposit in case she damages common property when she moves out in December.

If no damage occurs, the cheque will be returned to Ms Toh, who normally uses digital payments.

"This is more convenient because a PayNow or bank transfer refund will take processing time," said Ms Toh.

A refund can take anywhere from two weeks to six weeks to complete, depending on each condo management's procedures.

National University of Singapore professor of finance, real estate and economics Sumit Agarwal said using cheques means money is not transferred instantly, which provides a layer of security.