Cashback schemes hold no currency with consumers

NEARLY half of people are unlikely to request cashback at the till in shops and such initiatives will not be enough on their own to plug gaps in the UK’s ‘fragile’ cash system, according to Which?

A survey carried out for the consumer group found that some people view taking out money in this way as inconvenient, or even a security risk.

The UK Government has said it will legislate to protect the future of cash, and various industry efforts to maintain access are gathering pace, such as being able to request cashback without making a purchase in shops.

Changes made in 2021 have allowed people to request cashback from stores without needing to make a purchase or pay a fee.

But Which? said a survey of more than 2,000 people found just one in six (16 per cent) are aware of the cashback without purchase scheme, and among those who are aware, just under a third (31pc) have used it to access cash.

Nearly half (46pc) of those questioned said they are unlikely to use the service, with a quarter (25pc) of these thinking it will not be convenient.

Nearly a fifth (17pc) who are unlikely to use the scheme have concerns about privacy and 16pc are worried about security issues.

A quarter (25pc) of people who said they are unlikely to use the service said it would feel unfair to the shop or business to handle the cashback service.

Which? said it believes that cashback without purchase is a valuable tool in helping to protect access to cash, but it cannot meet everyone’s needs and should be viewed as part of a range of solutions.

Jenny Ross, Which? Money editor, said: “Schemes like cashback without purchase have a role to play to protect access to cash for those who rely on it, but they won’t be enough on their own to plug the gaps in the UK’s fragile cash system.

“Our research highlights clear limitations of these schemes, with very low uptake among consumers.”