British lender Barclays is planning to pilot mobile cheque deposits offering in the country, after a recent consultation by the government to allow use of smartphones for remote cheque deposits.
As per the new plan, the banks operating in the UK will be able to process cheque images for the first time, suspending the current requirement for banks to physically see the paper version before agreeing to honor the payment, reported Finextra.
Commenting on the new initiative, the UK Treasury said that the new rules is expected to reduce cheque processing time from six to two days.
Barclays managing director Steven Roberts was quoted by Finextra as saying, "We’re excited to be the first bank to pilot this new technology and always welcome legislation which enables the whole industry to work together to make customers lives easier.
"When you can download a book or a film in seconds, we believe you should be able to deposit a cheque in the same way."
A study revealed that approximately £840bn of cheques were processed last year – accounting for 10% of all payments made by individuals, which underlines the importance of cheques in the British payments landscape.