Companies that operate free-to-use cash machines in rural communities are to receive a cash injection to help slow the decline of ATMs as online banking takes hold.
Under the funding plan run by LINK, the UK’s main cash machine network, businesses offering free ATM services at eligible machines will received a “super premium” of up to £2.75 every time a customer withdraws cash.
The funding for the scheme will be provided by banks to support the continued presence of access to cash in hard-to-reach and less well-off communities in the UK.
It comes after an analysis of branch services conducted by Expert Market predicted that ATMs would be “distant memory” within 20 years, as lenders and businesses adapt to the shift towards digital and mobile banking services.
Taking effect from 1 April, the premium will be made available to around 3,500 free-to-use ATMs that are currently 1km or more away from the nearest free-to use ATM, or form part of LINK’s Financial Inclusion Programme, which safeguards free ATMs in remote and deprived areas. There are currently around 50,000 free-to-use ATMs in the UK.
It is expected that approximately 1,000 of these ATMs will initially be eligible to receive a premium, but this is likely to increase as cash withdrawals at ATMs continue to fall, the operator said.
The £2.75 per cash withdrawal is in excess of the price charged to consumers by an average pay-to-use ATM, so it is hoped there will be no need for an operator to turn a free ATM in a remote or deprived area into a charging machine.
John Howells, chief executive of LINK, said: “We are delighted to announce this increase in financial support for ATMs in remote and deprived areas that provide a vital service to communities.
“While many consumers are turning to alternative payment methods such as contactless cards, it is vital we continue to provide free access to cash to those who need it.”
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