Time for a cash fight back: UK Cash Supply Alliance launches
A new not-for-profit organisation, the UK Cash Supply Alliance (CSA), officially launches this week.
This comes as the coronavirus pandemic has accelerated adoption of contactless payments.
The UK CSA says that, despite 40 million UK adults (75% of the population) regularly using cash and a total of 1.33 billion ATM withdrawals in 20202, businesses nationwide are increasingly refusing to accept it.
Its steering group includes representatives from the Post Office and Cennox, whilst TNS, NCR and Loomis are onboard as principal sponsors.
Conversations are planned with UK government, regulators, trade associations, the retail sector and the public.
A press release states: “While the government has legislated in the Financial Services Act 2021 to aid greater adoption of cashback without a purchase, it only launched its consultation this summer to set out proposals for further legislation.”
“The CSA will promote the widespread acceptance and availability of cash, so it remains a valid payment option for UK consumers of all demographics and anywhere in the UK.”
Nigel Constable, Chair, the CSA, comments: “The future of cash is at a crossroads – many organisations publicly support its continued existence but are not driving the new solutions needed to make this a reality.”
“We want to secure the future of cash. To sustain it into the future, it is critical that both deposit and withdrawal facilities are maintained and developed.”
“There are huge opportunities to make better use of existing infrastructure as well as introducing new and innovative solutions.”
He adds: “It’s time for a cash fight back. We’re currently awaiting a response from the Government Access to Cash consultation and it’s vital that it now gets to grips with the positive solutions needed to protect cash for all.”
“We know that low income, rather than age, is the most accurate indicator for cash dependency. Yet for many, it is also about the freedom to use cash, for personal budgeting, or as a desire to avoid card data being captured and monetarised.”
“Those who speak glibly about a cashless society need to be aware that for some, access to legal tender can be the difference between whether they eat, or pay for their electricity.”
Constable argues that much more can be done to reduce the cost of cash within the current £5 billion annual bill for the UK cash infrastructure.
This includes new cash withdrawal channels in stores to support ‘exact amount’ dispensing, especially for those customers who need to access all the funds in their account and digital alternatives to coins.
He adds that the UK CSA is concerned the ability for consumers and small businesses to pay in funds is diminishing as bank branches close, even though there is an under utilised network of deposit taking machines in the branches that remain open.
