Malawi’s banking industry has set December 2025 as the target date to phase out cheques, marking a major shift towards a digital payments ecosystem.
According to sector leaders, the move is driven by a strategic push to modernise the country’s financial infrastructure and eliminate inefficiencies associated with paper-based transactions.
Industry officials say the planned cessation will hinge on an ongoing review of the legal framework governing the payment instrument, a prerequisite for formally retiring one of the oldest payment methods in Malawi’s banking system.
The rationale for the transition is based on both operational efficiency and technological advancement. Cheques, once central to business and government transactions, have become costly to process, vulnerable to fraud, and out of sync with the speed expected in modern commerce.
The Bankers Association of Malawi (BAM) is coordinating the transition across all member banks to ensure uniformity and minimal disruption.
“We are providing technical guidance, facilitating dialogue with regulators, and ensuring that banks adopt harmonised standards,” said Lyness Nkungula, CEO, BAM.
As banks modernise their systems, several digital payment technologies are being prioritised to absorb the transaction volumes historically handled by cheques.
The National Switch (NATSwitch) is expected to play a central role in managing increased digital transaction volumes. Upgrades are underway to enhance capacity, reliability, and integration between banks, mobile money operators, and fintechs.
Interoperability is being strengthened to ensure that customers can transact seamlessly across providers. Banks describe fintechs and mobile money providers as “partners, not competitors,” especially in extending services into rural and underserved areas.
With growing reliance on digital channels, banks are expanding their cybersecurity and fraud-detection capabilities. Investments include advanced monitoring tools, stronger authentication methods, and industry-wide awareness initiatives. Regulators are also tightening oversight to reinforce systemic resilience.
To support customers accustomed to cheques, banks are preparing outreach campaigns aimed at boosting confidence and improving digital literacy.
The financial sector says these measures will ensure a smooth transition as Malawi prepares to retire cheques and embrace a faster, safer, and more inclusive digital payments era by the end of 2025.
Share
