ACS (the Association of Convenience Stores) has submitted evidence to the Access to Cash Review, which is seeking views on the cash access requirements for consumers and businesses over the next five to fifteen years.
In the submission, ACS calls for retention of the ATM network to meet the demand for cash as a form of payment. The majority of convenience stores trade in locations where they are one of a limited number of shops and services, often providing the only source of cash access for consumers.
Cash is still the dominant payment method for customers in convenience stores, the 2018 Local Shop Report shows that 46% of convenience stores have a free to use cash machine and 76% of customers pay by cash.
ACS chief executive James Lowman said, “Convenience retailers are increasingly the only local source of cash as bank branches close, taking their ATMs away from the communities that they used to serve. Our sector provides secure access to cash through cashback and Post Office services as supplements to national cash access through ATMs, but these cannot fully replace a strong national ATM network.”
The submission highlighted concerns how a switch to cashback services for access to cash would increase the threat of robberies and incur high insurance premiums through more cash being held on the retailer premises.
In an online survey of more than 2,000 adults, consumer group Which? found that almost everyone uses cash (98%), with almost three-quarters (73%) using it frequently to pay for goods and services. Only one in 20 (5%) say they rarely use cash.
The full submission can be found here.
