Cheques could become extinct by 2025

New research has shown that the use of cheques has hit an all-time low, with the number issued down seven per cent from last year.

According to the research debit card transactions are on a rapid rise, with 90 per cent of salaried adults paid in this way, and 40 per cent of state benefits also paid via the electronic medium.

The introduction of chip and pin is also thought to have contributed to the rise in popularity of debit card payments, and with the technology being new, experts predict usage of the system can only increase.

Peter Jackson, head of banking at the Halifax, said: "It is very clear that the cheque is no longer the main payment method and based on the current rate of decline they are likely to virtually disappear within the next 20 years."

He concluded: "Cash and debit cards are clearly the preferred method of payment in the UK today."