Cashback without a purchase – or cash-in-shopService allowing a customer to withdraw cash from a payment account using a mobile application on a smartphone at a participating shop supporting the application. Also referred to as a “virtual ATM”. Unlike cashback, a cash-in-shop transaction does not require the consumer to make a purchase. More as it is called in the European Union – is not new in the UK, a country that has been an early adopter of cashback. In 2019, Mastercard introduced a commission to merchants who provide cashback, and Visa followed in 2020. In 2021, Swiss-based Sonect launched the first cash-in-shop pilots. The solution has since been rebranded Click & Collect and has been expanding since.
Ron Delnevo, UK Director of Sonect, noted: “The feedback on this new service has been fantastic so far. Customers really appreciate the certainty of knowing where and when they can pick up their cashMoney in physical form such as banknotes and coins. More without the obligation to make a purchase. At the same time, our retail partners are benefitting from increased foot fall and more efficient use of the cash in their businesses. I am confident every community in the UK will soon be ready to welcome this innovation.”
Barclays is now rolling out the service, creating thousands of new locations for consumers to withdraw cash for free. This is the first time a UK bank has launched its cashback without purchase service.
The new service allows businesses with a Barclaycard Payments terminal to offer customers of any bank with a Visa or Mastercard debit card up to £100 per day without needing to make a purchase. In return, the bank will pay participating businesses a transaction fee. Unlike ATMs, consumers will also be able to receive coins, with no lower limit and non-round amounts such as £8.64 allowed.
Thousands of small businesses around the UK with a Barclaycard Payments terminal can already offer the service. Barclays is working with them over the coming weeks and months to promote the service in their communities. Following this, information will be available for consumers to find their nearest cashback without purchase location.
As well as new and alternative places to withdraw cash, the service can create an additional revenue stream for participating businesses, help local community cash recirculationThe right to recirculate banknotes that have been checked for authenticity and sorted for fitness by banks and cash-in-transit companies. The right is normally based on rigorous rules established by the central bank. See also Recirculation. More, and boost business footfall.
Tim Allen, Head of Access to Cash at Barclays UK, said: “While an increasing number of our customers choose to pay digitally, we recognise that for some, cash remains vital. This service will benefit communities around the country, beyond our customer base, giving them the choice and flexibility to access their moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More conveniently. This is part of our broader commitment to preserving long-term access to cash for those who require it.”
Natalie Ceeney, Chair of the Access to Cash Action Group, said: “This new service from Barclays is very welcome. ATMs work well for most people, but having additional places to withdraw cash, particularly if you want to get out less than £10, can help communities and small businesses as well as vulnerable consumers. Making cashback without purchase widely available needs to be a key part of the national strategy to keep cash accessible.”
The service is being deployed as the branch and ATM networks continue to shrink in the UK. According to Which? (a consumer association) more than 650 bank branches will close in 2022, 178 of which belong to Barclays.