Feb. 19, 2019
Lloyds Banking Group has launched a pilot program to incentivize retailers to give cash back at the point of sale in response to criticism that consumers are underserved in certain areas.
The program pays a fee to retailers who provide cash back to their customers, as currently retailers do not get compensation when giving cash back at the POS. The bank said the program is not considered a substitute for ATM machines, and retail customers will still be able to buy their goods with cards and mobile devices.
"Our new cashback pilot, in partnership with Visa, aims to increase the number of places where people can withdraw their money, particularly in
those areas which are currently underserved by free-to-use ATMs where a customer's access to cash may be more vulnerable," Vim Maru, group director retail at Lloyds, said in the announcement.
The pilot will be rolled out initially to a select number of Cardnet merchants in the spring of 2019. More than 50,000 merchants may be eligible to participate.
The company said for the vast majority of the population, cash is available at 50,000 ATMs, 7,000 bank branches and 11,500 post offices, but for some elderly and other customers that live in rural or other underserved areas, cash is not as accessible.
The fee has not yet been set. The customers will initially be required to make a purchase to get cash back, but eventually, the bank will allow cash back without a purchase.
Merchants will also be supported if they choose to advertise that they offer the program.
Topics: Mobile Payments, POS, Region: EMEA, Retail
Companies: Lloyds Bank plc, Visa
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