Why access to cash matters
One of our strategic priorities is to ensure that users have continued access to the payment services they rely on, in ways that work for them.
While UK consumers and society are increasingly using a wide range of ways to pay, being able to pay with cash remains important. Cash is still the second most popular payment method in the UK, accounting for 12% of all payments in 2023, with free-to-use (FTU) ATMs remaining the main channel through which most people access cash, representing 93% of all cash withdrawals in the UK in 2023.
Who regulates access to cash?
After the Financial Services and Markets Act 2023 (FSMA 2023) became law, the government set out its Free access to cash protected policy approach to ensure access to cash for those who want to continue using it. It has given the FCA broader powers on access to cash while the Treasury’s Policy Statement set out the government’s aim for the vast majority of people in the UK to have reasonable access to cash deposit and withdrawal services within a maximum of either one mile in urban areas or three miles in rural areas.
The FCA has consulted on their proposed regulatory framework and now published their final rules and policy statement.
What is our role?
We will retain oversight of LINK, the UK’s largest ATM network which allows cardholders to withdraw cash at any ATM connected to its network, as a designated payment system under FSBRA 2013, and we will work closely with the FCA in their oversight of LINK as a designated cash access coordination body. As part of our supervisory approach, we will continue to monitor developments in cash access and take swift action to address any potential issues that emerge.
Together with the FCA, we monitor the availability of cash access points across the UK. Our latest estimates (availability of cash points - June 2023) indicate that 99.3% of the UK urban population are within one mile of an FTU cash withdrawal point, such as a cash machine or a Post Office branch, while 98.6% of the UK rural population are within three miles.
We will continue to be a part of the Joint Authorities Cash Strategy (JACS) group, which ensures there’s comprehensive oversight of the UK’s cash infrastructure – including cash production and distribution, bank branches, retailer cashback and shared Banking Hubs.
Who to contact
If you have any questions about access to cash, you can contact the FCA at www.fca.org.uk/contact
If your query relates to our regulation of LINK as designated payment system, you can contact us at contactus@psr.org.uk