ACS (the Association of Convenience Stores) has welcomed a new call for evidence from the Government on the future of the UK’s cash system.
Under the proposals, announced this morning (15th October), cashback could be made available in shops for customers that wouldn’t be required to make a purchase to access the service.
The plans would also give the overall responsibility for the UK’s cash system and protecting access to cash to the Financial Conduct Authority.
Figures from the 2020 ACS Local Shop Report show that more than two thirds of convenience stores (68%) already offer cashback to customers, with around half (49%) providing a free to use cash machine.
ACS chief executive James Lowman said: “We welcome the Government’s focus on securing access to cash for the long term, as cash remains an essential and widely used method of payment for millions of people. Providing cashback without a purchase might work for some retailers, but may not be viable for everyone and cannot be seen as a replacement for the UK’s ATM network. We are watching with interest trials of new approaches to offering cashback.”
A comprehensive review into access to cash, published last year by Natalie Ceeney CBE, made a series of recommendations to secure the public’s future access to cash. These include:
- A “Guarantee to Cash Access” for all, including those in remote and rural areas
- Those providing essential services to be required to allow consumers to pay by cash
- A more efficient, effective and resilient wholesale cash infrastructure to ensure that cash remains viable as its use declines
ACS will be responding to the call for evidence in the coming weeks. The full announcement from Government is available here: https://www.gov.uk/government/news/government-outlines-approach-to-protect-future-of-cash
