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U.K: Barclays Launches Cashback Without Purchase Service

Categories : Cash connects people, Cash does not require a technology infrastructure, Cash is available to all users, Cash is universal
October 17, 2022
Tags : Access to cash, Cash-in-shop, CashTech, UK
Barclays is providing free cash access via local retailers and small businesses. Customers of all banks will be able to make free withdrawals from 1p up to £100, including non-round amounts. Companies offering the service will receive a payment for every transaction processed.
Guillaume Lepecq

Chair, CashEssentials

This post is also available in: Spanish

From Cashback to Cashback without  Purchase

Cashback without a purchase – or cash-in-shop 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 cash 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.

Cash Withdrawals, from 1p up to £100, including Coins

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 recirculation, and boost business footfall.

Cash is Vital, but the Infrastructure is Shrinking

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 money 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.

This post is also available in: Spanish