On the 18th December 2013, The Bank of England announced that Polymer Banknotes would be introduced into circulation from 2016. It’s estimated that £5 notes will be introduced late 2016, with £10 and £20 denominations being released by 2020.
Following three years of research and public consultation, the decision to move to Polymer (plastic) banknotes has been favoured by many respondents – through visits to UK shopping centres, Q and A sessions and interviews. However, independent research, conducted by CMS Payments Intelligence, suggests that the cost of implementing the new banknotes has not been overly considered and such costs will have an impact on many businesses and retailers.
It’s estimated that Polymer banknotes will cost businesses a staggering £230m to implement with the majority of the cost being spent on machine replacement and recalibration, such machines that are used in everyday lives - ticket machines, ATMs, and self-service machines. Other areas of cost include staff training and purchasing of retail counterfeit equipment.
Brendan Doyle, Chief Executive of CMS Payments Intelligence, said: “The Bank of England has not adequately acknowledged the potential disruption and costs to the cash supply industry and retail sectors. There will be huge operational challenges for all merchants, particularly those who operate ATMs and vending machines.”
LDF understand that machine replacements and maintenance could significantly hinder business cash flow, and are able to provide a number of alternative finance solutions to help. To find out more about how LDF could assist you please make an enquiry or call us on 01244 527 300.
Sources: http://www.cmspaymentsintelligence.com/eu/blog/article/payments-intelligence-polymer/
http://www.bankofengland.co.uk/banknotes/polymer/Pages/default.aspx
http://www.theguardian.com/business/2015/sep/11/plastic-banknotes-could-cost-businesses-236m
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