The End of Paper Cheques Approaches: Leumi Launches the 'Digital Cheque'
January 26, 2016
For the first time in Israel, cheques can be written and deposited entirely via mobile phone!
Leumi continues to lead the digital banking revolution, now with the launch of an innovative service that is exclusive in the Israeli banking system: "Digital Cheque" - a service that allows you to write and deposit cheques in a bank account using only a mobile phone, with no need for paper. Leumi is the first bank in Israel to launch this innovative service, and is amongst a select few banks worldwide to launch such a service.
How does the service work? Once they are logged into the Leumi Mobile app, and have selected the Digital Cheque service, customers will be requested to fill out the details of the beneficiary, the desired amount, and the payment date. The beneficiary (the payee) will then receive a notification via mobile phone, stating that a digital cheque is awaiting deposit into their account, including the cheque's payment date. The payee is then simply required to choose his/her account number, in order for the cheque to be deposited into that account. Once the cheque has been deposited by the beneficiary, the cheque's sender will be notified of the successful transaction.
In addition, the service allows Leumi customers to write a series of digital cheques to the same beneficiary (for example, twelve post-dated cheques for monthly rent payments), in which case the relevant information is only entered once for the entire series of payments.
It should be noted that digital cheques can neither be forged nor endorsed.
At this stage, the service is available to Leumi customers only, and is limited to digital cheques of up to NIS 10,000. Issuing a digital cheque is free of charge, while the beneficiary depositing a digital cheque will incur a direct channel transaction fee (NIS 1.65).
In recent years, Leumi has conquered the digital banking field in Israel and is the most advanced bank in the system today, offering a broad range of cutting-edge products and services based on advanced technologies. Currently, more than 60% of the Bank’s customers use digital channels to carry out their banking transactions, with approximately 52% of banking transactions carried out via digital channels. The Digital Cheque joins a long line of advanced digital services, which Leumi was the first to develop in the banking system, such as 'Pic n' Pay', enabling the payment of bills via mobile device, and 'Cash by Mobile', which lets customers withdraw cash from Leumi ATMs using only their mobile phone, without the need for a bank card.
Leumi stated, following the launch: "We continue to spearhead the most advanced digital banking in Israel and are proud to be among the first banks worldwide to launch such a revolutionary service. The Digital Cheque joins a series of digital products aimed at simplifying customer experience with one clear common goal: creating a more intuitive, innovative way of banking that is more affordable for our customers".
* The Digital Cheque is exclusively developed by Bank Leumi and is considered a cheque for all intents and purposes. Until it is recognized by the Bank of Israel and the Ministry of Justice, the Law of Bills does not apply to digital cheques.