Cash withdrawal plan in UK stores
Pilot scheme will give access to money
CONSUMER: Shoppers will be able to make free cash withdrawals from tills in some convenience stores under a trial launched next month to help keep banknotes and coins viable.
The initiative is being launched by the cash machine network, Link, and the in- store payment services and ATM provider, PayPoint.
CONSUMERS WILL be able to make free cash withdrawals from tills in some convenience stores under a new trial being launched next month to help keep banknotes and coins viable.
The initiative, which starts from October 15, is being launched by the cash machine network, Link, and the in- store payment services and ATM provider, PayPoint.
The pilot will be running in North Yorkshire, and if successful, it could be rolled out more widely.
It is one of several initiatives taking place under the Community Access to Cash Pilots ( CACP) scheme, which is looking at ways to make cash more sustainable.
Other initiatives include deposit schemes for small businesses, shared banking spaces and digital education services.
The chief executive of Link, John Howells, said: “This is a first in the UK and could prove to be
an important measure for keeping cash viable.
“Assuming consumers agree this is a useful new channel, it will be important that the Government and regulators create an effective regulatory framework to enable a full rollout.”
As more transactions are processed digitally, the use of cash has shrunk dramatically. A decade ago, cash was used in six in 10 transactions, but by last year it was used in fewer than three in 10. Forecasts have suggested that cash might only be used in one in 10 transactions by 2028.
Under the Link/ PayPoint initiative, customers will be able to withdraw precise amounts rather than being restricted to the denominations of notes dispensed by ATMs. They will not need to make a purchase when making a cash withdrawal.
The scheme will initially be piloted in 15 shops including Botton Village in North Yorkshire, which will trial a “disability friendly” ATM and a local store will offer Post Office services. Other locations include Burslem in Staffordshire, Hay- on- Wye in midWales and Denny in Falkirk.
The CACP scheme, which is taking place more widely across the UK, is supported by the banking and finance industry. The trials will operate for the first six months of next year and their findings will be analysed in the summer.