Mastercard is launched a new cashback initiative aiming to “help maintain access to cash, and benefit retailers and consumers alike”.
Its new cashback initiative will offer local shops and business a fee for every time they dispense cash to a shopper paying with a Mastercard debit card.
UK cash usage dropped 16 per cent between 2017 and 2018, and the rapid decline in usage has also led to a dramatic reduction in available ATMs.
Mastercard is aiming to find a “new and sustainable” way to offer cash access to those customers who still prefer to use it as a payment option.
From April 2020 Mastercard will offer the new fee to any retailer offering cashback on debit card purchases from any of Mastercard’s issuing partners, including Clydesdale Bank, Metro Bank, Monzo, N26, Starling Bank, Virgin Money, Yorkshire Bank and starting later this year Santander.
“As an industry we have committed to finding sustainable ways to maintain people’s access to cash,” Mastercard’s UK president Mark Barnett said.
“By leading this new cash back initiative we aim to encourage more shops to offer their customers the option of cash back at the point of sale.”
“This enhancement to retailer cash back isn’t a replacement for ATMs, but if we can add to the number of outlets where people can access cash, especially in areas without an ATM, it will be a valuable addition to the community for both consumers and local businesses.”