National Payments Plan Progress Update March 2009

National Payments Plan - Progress Update 2009

The National Payments Plan was a landmark publication for the Payments Council. Launched in May 2008, the Plan sets out a 10-year vision for UK payments together with the practical steps needed to put the vision into practice. We committed to an ambitious timetable, with a number of actions to be completed by the end of 2008.

This update reports on this work and the key decisions taken in December 2008 by the Board of the Payments Council.  This marks the end of the first phase of work, and identifies this year’s work programme.

Research Consumer and SME Report by Andrew Irving Associates PDF

A number of the questions asked in the National Payments Plan Consultation surrounded the future of cheques in light of the continuing decline in cheque volumes.

In the National Payments Plan, we committed to conducting research and analysis by the end of 2008. This set out to:

• understand the barriers to cheque substitution;
• identify the areas where work is needed on acceptable alternatives to cheques; and
• clarify wheremore education is needed on existing alternatives.

Following a competitive tender process, the Payments Council commissioned Andrew Irving Associates to conduct a comprehensive piece of independent market research exploring the reasons why consumers and small businesses continue to use cheques. This research utilised a qualitative methodology through focus groups and depth interviews to understand, in detail, the barriers to using electronic methods of payment and the features which would be valued in future alternatives to cheques. The research report written by Andrew Irving Associates is available for download above.

Importantly, the research specifically targeted those businesses and consumers who may be reliant on cheques for particular applications, including small locally-run clubs and charities, individuals who are housebound, and individuals who have power of attorney on behalf of someone else. 

The findings of this research have been shared with organisations on the Payments Council’s Consumer and SME User Forums, who have been supportive of the findings. The findings are now being used to help identify the product developments, enhancements and information needs which consumers and businesses require in order to support migration to more efficient payment methods. Further work is underway to identify and analyse potential solutions for groups who may have difficulty migrating to existing electronic payments should cheques no longer be available. 

PAYMENTS COUNCIL
March 2009