Link trialled no-purchase cashback so corner shops could stand in for closed ATMs

In a November 2020 BBC report, Link, which oversees the UK's cash machine network, was trialling purchase-free cashback in 13 small shops across four communities. One was Imran Hamid's family convenience store in Denny, near Falkirk, where TSB, Royal Bank of Scotland, Bank of Scotland and Clydesdale had all closed. Residents put their card in a PayPoint machine and ask for a balance or cash from the till at no charge.

The shop gains in three ways, according to Hamid: people who come in for cash may also pick up a juice or cigarettes, he gets a small fee from the banks per withdrawal, and cashing up at the end of the day is easier. He also describes it as a community service for elderly residents and people on benefits.

Unlike an ATM, which dispenses fixed note multiples, the shop can give out any amount from a penny to £100. The BBC reported the average withdrawal was £26.80, about a third of a typical cash machine withdrawal. The shops were part of tests in eight cash-stricken communities, alongside a financial hub in a Methodist church and drop-and-go deposit points for small firms.

ATMs in quiet areas stop being commercially viable once cash use falls, and Link expected cash to be as little as one in 30 transactions within a few years.

The shop already has cash in the till and a card terminal, so no new machine is needed.

Footfall and easier cashing up pay the shopkeeper even if the per-withdrawal fee is small.

Handing out small amounts lets people on low incomes take exactly what they have.

When a service is no longer commercially viable as dedicated hardware, look for a business that already holds the inventory and gives it a reason to hand it out.

The BBC reported that expanding the scheme would need legislation, that the government had signalled its support, and that a consultation on access to cash closed that week. Natalie Ceeney, author of the Access to Cash Review, wanted a legal duty on banks to keep cash available. The article reports no results beyond usage in the trial shops.