Thousands of retailers set to offer cashback without purchase

Thousands of retailers in the UK will allow customers cashback without needing to purchase an item for the first time in coming months.

The news comes following a successful pilot involving 13 shops as the UK government scrapped  rules that made it more difficult for shops to offer cashback.

Many shop owners will wish to get involved as banks will make it “worth their while” with the fees, according to the Telegraph.

Banks have been finding ways to improve their cashback options as there are concerns that branch closures are leaving vulnerable without access to their money.

The scheme, coined Cash Action, will extend shared bank pilots in South Lanarkshire, and Rochford, Essex, from October this year until at least April 2023.

The areas that have been chosen for the pilot have been selected due to a lack or less access to free ATM machines.

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A previous scheme which involved the use of shared banking hubs was ditched in 2003 after it was concluded that the idea would not be viable in the long term, however customer footfall at high street banking branches has plunged as a result of the pandemic and online banking.

From the start of the beginning of the lockdown in March last year to the end of the restrictions last month, 801 bank branches closed their doors, according to Which?, with an extra 103 expected to follow suit.

In the last six years, over 4,000 UK bank branches have closed down permanently, despite public backlash and protests.

With cash becoming less important in today’s society, the UK treasury is looking into ways of maintaining access to cash, one of which being to hand the Financial Conduct Authority (FCA) powers to block branch closures from banks it regulates.

The FCA is demanding banks slow down the closure of branches however the pandemic and increase in online banking habits have made it harder for banks to justify keeping branches open.

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1 Comment. Leave new

  • Pearl Hamilton
    August 18, 2021 12:46 pm

    This is such an ill-thought out scheme for small independent retailers, particularly in safety terms. Banks and card providers would be better placed to agree to negate fees/charges for card transactions £5 and below. That would be a #winwin for all concerned.
    I was in the first 200 UK businesses to be part of Which CashFriendly initiative launched earlier this year.

    Reply

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