Lloyds Banking Group is looking to sign up 500 retailers to provide over-the-counter cahsback services in communities where cash availability is low
The initiative builds on the success of a 2019 pilot delivered in partnership with Visa, and could be extended further if successful, says Lloyds
The bank intends to offer a financial incentive for retailers and businesses in identified locations, from corner shops to pubs and pharmacies, to offer cashback to all of their customers.
Typically, these locations do not have access to cash from either an ATM, cashback enabled retailer, bank branch or Post Office within one mile of their home.
The bank states: "As the country begins to navigate its way out of lockdown, the initiative will also help to test the level of cash demand and usage as customer behaviour continues to change, and allow us to analyse the future potential for cashback in otherwise under-served communities."
Concern has been growing for years about the removal of fee-free ATMs and bank branches in small communities, which is leading to the creation of 'cash deserts' that hit vulnerable groups such as the elderly.
Last year, the independent Access to Cash Review said the UK is not ready to go cashless and set out a series of measures necessary to ensure no one is left behind as the country moves towards a digital society.
In March, with the Covid-19 pandemic hitting cash usage, the government committed to legislating to protect access to cash for as long as people need it.
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