LINK and PayPoint launch free cash withdrawals pilot

UK ATM cash machine network, LINK, and PayPoint, an in-store payment services and ATM provider, have begun a trial enabling consumers to take out cash in smaller shops without paying a fee.

More than 1,500 cash withdrawals and 165 balance enquiries have thus far been made with an average withdrawal size of £26.80.

LINK and @PayPoint are trialing a cashback without purchase pilot in several convenience stores across the UK. The response so far has been warm. Excellent to support local communities and retailers. https://t.co/2UmFt6PZqu
— LINK Scheme (@LINK_ATM_Scheme) November 24, 2020

The trial forms part of the Community Access to Cash Pilots and is being piloted in 13 shops across Burslem in Staffordshire (England), Hay-on-Wye in Powys (Wales), Cambuslang in South Lanarkshire (Scotland) and Denny in Falkirk (Scotland).

Retailers are remunerated for providing this service by the cardholder’s bank via PayPoint and consumers can withdraw precise amounts rather than be restricted to the denominations of notes dispensed by ATMs.

The launch follows a new consultation from HM Treasury on protecting access to cash. If the pilot is to be rolled out nationally, it will require modification of existing legislation.

LINK has invested £1 million in the pilot and a local marketing campaigns will take place in each community.

Adrian Roberts, Chief Commercial Officer, LINK, comments: “The pilot has got off to a strong start and it’s very encouraging to see so many consumers making use of and benefitting from this new service.”

“As we use less cash, solutions such as this become more important as ways of providing free access to cash in all communities. Last week the government began consulting on protecting cash access and we’re very pleased to see cashback without purchase as one of the proposed solutions.”

John Glen, Economic Secretary to the Treasury, comments: “It is vital that we find new ways to ensure consumers and businesses can easily access cash in their local area.”

“The government is currently exploring how to make cashback without a purchase widely available from local retailers, and I am pleased to see good early demand in these industry trials. These pilots, and others in the Community Access to Cash Initiative, will provide important lessons as we develop new legislation to protect access to cash.”