More c-stores to supply cash as ATMs close

Shoppers will soon be able to take cash from convenience stores as a scheme enabling cash to customers without having to make a purchase is being expanded rapidly over the next few weeks, stated recent reports.

The scheme began with a trial in 900 stores, and will soon be used in 2,000 shops.

The system operates through a PayPoint network in local stores, and is backed by Link, which oversees the UK's cash machine network, said the reports.

People using the service can choose to withdraw any amount between 1p and £50, rather than just the notes dispensed by an ATM. They do not have to buy anything in the shop to receive the money, and are not charged a fee, said the reports.

Retailers receive a fee from the cardholder's bank each time the cashback service is used, and groups representing shopkeepers have given a guarded welcome to its expansion.

During the year-long trial, more than 24,800 transactions have been made, with an average withdrawal of £27.81.

The requirement for the service is the result of disappearing free-to-use ATMs, particularly in less populated areas. There was a 25 per cent drop in the number of free-to-use cash machines between January 2018 and October this year, reports said.

Representative iStock image

Link's own figures suggested that while some wealthier parts of Edinburgh and London saw a sharp fall in demand for cash machines, there remained a greater reliance on cash in areas such as Liverpool, Bradford and Birmingham.

"Alternative ways of providing cash are essential, which is why we welcome the extension," BBC quoted Tom Ironside, director of business and regulation at the British Retail Consortium, as saying.

"Nonetheless, the provision of cashback is not suitable for all retailers as it often requires them to hold significantly more cash than normal – putting them at an increased crime risk. For this reason, the availability of free-to-use ATMs in all parts of the country remains essential."

The trial, and subsequent extension of the scheme, is part of a wider project by the UK government trying to ensure notes and coins are accessible to everyone who needs them across the UK.