Check reform: major changes for slow-rolling benefits

African Manager

09-06-2025

Tunisia's check system reform has significantly altered payment behaviors, impacting consumption and inflation.
The changes came after repeated complaints from SMEs about unpaid checks, as highlighted by Yassine Gouiaa, then-head of the National Organization of Entrepreneurs, in October 2021.
By November 2021, Sofiane Gabsi, Secretary-General of the National Association of Small and Medium Enterprises (ANPME), even called for abolishing prison sentences for SME owners in cases of 'bounced checks.'
In February 2025, a new law overhauling Tunisia's check system took effect, disrupting financial and economic norms long accustomed to checks as a primary payment and business tool.
Spearheaded by the presidency, the reform introduced new rules, some still unenforceable and practices that clashed with both entrepreneurial culture and existing infrastructure.
Overall, the reform was not implemented smoothly, as it is still being discussed and there is no consensus on its consequences.
Firstly, the amount of circulating banknotes and cash reached nearly 25 billion Tunisian dinars in June, while the check law aimed to boost the digitization of local commercial transactions.
By 28 May 2025, the value of circulating banknotes and coins had risen by 3 billion Tunisian dinars compared to the same period in 2024. This was officially attributed to the Eid al-Adha festivities, despite the fact that purchases, particularly of sheep, had not yet begun, given that prices had already skyrocketed to unprecedented heights.
72% of checks were used as collateral before reform and 74% of people reported difficulties afterwards
Before the reform, 72% of checks were used for deferred payment or as collateral. One-third of consumers consider checks to be a means of deferred payment. Even among those with incomes above TND 5,000, 66% use them for installment payments.
The IACE study, based on a survey, asserts that 47% of respondents encountered payment difficulties after the reform.
29% of respondents either gave up or postponed a purchase, often exceeding TND 1,500 D. The reform has had a particularly significant impact on the middle classes (earning TND 1,000–TND 3,000).
According to INS data, the survey results indicate a decline in consumer purchasing intentions, particularly for goods sensitive to the use of checks. This could partly explain the 0.87% decline in the added value of the trade sector between Q4 2024 (2,857 MD) and Q1 2025 (2,832 MD).
'If you have cash, everything is free!'
According to the IACE survey, the preferred payment methods of Tunisians after the new regulations came into force are cash (47%), followed by bank transfers and bills of exchange (16% each).
Only 7% of respondents use the new check. Direct debit is almost non-existent (0.4%), despite being available at Tunisian banks, particularly for housing loans and loans for civil servants.
According to the IACE survey results, 29% of consumers have given up on purchases, affecting essential goods. 78% of postponed purchases exceed TND 1,500, indicating a significant economic impact. This decline in purchase intent could explain the 0.87% decrease in the added value of the commerce sector.
Looking ahead, 58% of respondents prefer mobile payments. 34% want deferred debit cards. Only 2% want to return to the old check system.
Meriem Ben Nasser offers another perspective on the future, asserting that there are a few quick and effective alternatives to checks.
In a LinkedIn post, she mentions BNPL (Buy Now, Pay Later), a digital solution integrated into the point of sale which enables customers to purchase items on credit with just a few clicks, without any paperwork.
Other alternatives include instant digital microcredit backed by simplified scoring via mobile or payment history, pre-authorized payment cards with integrated payment facilities and mobile split payments via QR code.
According to the expert, it is urgent that retailers and consumers are trained, the user experience is simplified, and local, inclusive and interoperable solutions are created.
IACE conclusion: The law on checks needs to be reviewed.
A survey conducted by the IACE one month after the new check regulations came into force reveals a rapid but mixed transition in payment habits. While the majority of consumers seem to be adapting by using alternative solutions, some members of the population are struggling to adapt, showing signs of temporary economic disengagement and indicating a risk of financial exclusion.
In this context, it is essential to review the regulations governing alternative means of payment, taking into account technological developments and international standards.
For instance, the European Union has enacted legislation that makes immediate transfers mandatory at the same cost as standard transfers. This system offers a reliable and modern alternative to cash or check payments.
It is crucial to emphasize that any reform must be accompanied by digital inclusion measures, targeted educational campaigns, and appropriate transitional arrangements, in order to ensure equitable adoption and prevent vulnerable groups from being excluded.
Furthermore, changes in usage must be continuously monitored in order to assess the medium- and long-term effects of this regulatory transformation on the economy and society.
*Analysis note from the Arab Institute of Business Managers (IACE).