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Lots and Lots of Fivers!

11 August 2008 1 comment

Russell Burke

Senior Payments & E-Money Authorisation Specialist

The Central Bank of Ireland

Why only fivers? Perhaps this makes sense for small cash withdrawals, but for larger amounts I would imagine a combination of large notes and some fivers would be more practical. Leaving the debates on a £5 coin and contactless cards aside for the moment, both of which could mean "less time at sales tills and less fiddly loose change", does dispensing £200 in the form of 40 fivers really add up? Will this not lead to machines emptying quickly and higher servicing costs? Will be interesting to see what happens.

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Paul Penrose Head of Research at Finextra

12 August 2008

Bank Machine MD Ron Delnevo has been touring radio and television newsrooms this morning to explain the scheme. Good citizenship aside, Bank Machine's business is primarily based around the provision of ATMs in low income areas and at military bases and hospitals. The long-term viability of the business is of course under threat from the provision of contactless payments, which have been pitched as a substitute for low-value cash transactions. Interesting that Delnevo is keen to highlight the Bank of England's backing of the programme - effectively pitting the central bank and its vested interest in the money supply chain, against the major retailers and high street banks who are pushing for more plastic payments.

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Russell Burke

Senior Payments & E-Money Authorisation Specialist

The Central Bank of Ireland

Member since

26 Sep 2002

Location

Dublin

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