Digital payment system gains solid ground in Qatar as cheque processing declines: QCB

Digital payment system gains solid ground in Qatar as cheque processing declines: QCB

Digital payment system is gaining solid ground in Qatar, QCB data reveal as the percentage of cheques processed to the total electronic fund transfers in the country declined from 63% in 2018 to 38% in 2021. In its 13th Financial Stability Report, the Qatar Central Bank said this “underscores the shift in consumer preference for digital payment methods” in the country. Despite introducing several electronic payment methods, cheques traditionally remained as one of the preferred payment modes in Qatar for a large segment of the population mainly because “cheques are considered as a sort of guarantee” on future payments, the QCB noted. However, the use of cheques in Qatar has been consistently declining relative to other electronic payment modes. The changes associated with Covid-19 have further accelerated the transition away from cheques as more people opted for digital alternatives. In terms of absolute value, the number of cheques processed in the Electronic Cheque Clearing System (ECCS) in 2021 remained at 3.95mn, marginally lower than the last year. Of which, 33,000 were high-value cheques with a face value of more than QR1mn and they were settled in RTGS on a gross basis. As in the previous year, the small value cheque