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<p>Last year, Government launched a Call for Evidence on Cash and Digital Payments
in the New Economy. One part of the wide range of evidence collected detailed the
changing levels of cash usage. Responses showed that, although the proportion of cash
transactions is expected to fall over the next 10 years, cash remains important in
the lives of many people and businesses across the UK. That’s why the Government is
committed to supporting digital payments, whilst safeguarding access to cash for those
who need it. The Government is engaging, and will continue to engage, with the regulators
and industry on this important topic.</p><p> </p><p>The Government has not made an
assessment of the effect on poor households of free-to-use ATMs becoming pay-to-use.
However, the Government-established Payment Systems Regulator (PSR) is closely monitoring
developments in ATM provision, including those that are free-to-use. The PSR regulates
LINK, the scheme which runs the UK’s ATM network, and has used its powers to hold
LINK to account over LINK’s commitments to preserve the broad geographic spread of
the ATM network.</p><p> </p><p>The PSR has set out requirements of LINK, including
that any cuts to interchange fees (the fees which fund free-to-use ATMs) must be incremental,
with action taken by LINK where the impact is not as expected. Having implemented
two of the four planned incremental reductions to the interchange fee, LINK has cancelled
the third reduction and put on hold the fourth. The PSR welcomed these adjustments,
having stated that LINK must carefully review its decisions on interchange fees to
reflect changing market conditions. These adjustments gave the PSR further assurances
that LINK is committed to making sure communities do not lose their free-to-use ATMs.</p><p>
</p><p>LINK has put in place specific arrangements to protect free-to-use ATMs more
than 1 kilometre away from the next nearest free-to-use ATM. LINK has also enhanced
its Financial Inclusion Programme by tripling the funding available to ATMs in the
most deprived areas of the UK and undertaken new financial support for ATMs in remote
and deprived areas.</p>
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