This functionality has been available in other countries, such as the US and France, for a few years. Interestingly, the legislation allowing it in the United States came about following payment delays caused by the flight problems caused after 9/11.
The image above shows how Bank of America achieve mobile cheque deposits with their iPhone app.
It is thought that the change will speed up cheque clearing from the current 6-day timescale to the somewhat quicker 2-day period (which whilst quicker, still seems a little tardy in today’s “realtime” world). Rather than the physical cheque needing to be taken toÂ clearing centres, the image of the cheque can be transferred digitally between banks.