Michael McGrath seeks to protect use of cash for necessities
The National Payments Strategy public consultation has opened.
Finance Minister Michael McGrath has said the Government will legislate to protect the right of people to use cash when paying for necessities as he launches a new public consultation on the National Payments Strategy (NPS).
According to the Department of Finance, the NPS will set out a roadmap for the evolution of the entire payments system, taking account of the increasing use of digital payments as well as the future use of cash in society.
On the issue of cash, the NPS is looking at the twin issues of cash access as well as cash acceptance with Mr McGrath promising legislation next year to ensure people have certain rights in these areas.
Mr McGrath said cash remains a “very important part” of many people’s day-to-day lives and by maintaining access to it, the Government is seeking to address the “potential risk of financial exclusion” as more and more goods and services are subject to digital payments.
The NPS will finalise next year with the Government hoping it will address issues such as, what is an appropriate level of access to cash in the future as well as what rights should people have in terms of reasonable access to cash.
Mr McGrath said the NPS will also address the ability of people to use cash to pay for certain goods and services, particularly on necessities.
“We have to make decisions about what is an appropriate right and in respect of certain goods and services. Not necessarily on every good or service.
Mr McGrath acknowledged that digital payment options are here to stay but people’s access to cash should be “no less than what we have now”.
The Banking and Payments Federation, Ireland, which represents the banking sector, welcomed the launch of the NPS public consultation with its chief executive Brian Hayes saying their members look forward to engaging in the process.
When Mr McGrath was asked what he would say to banks who may wish for cash to be phased out, due to the hassle in handling it, he said cash is “here to stay” and that it is important that change is not forced on people.
The pandemic spurred a move towards more contactless or digital forms of payment. During October, the latest figures available, total card payments amounted to €7.9bn.
The total value of domestic cash withdrawals stood at €1bn in October 2023, an 8.2% drop compared to May 2023.
The Government is also planning on regulating ATMs for the first time giving the Central Bank powers to oversee operators and ensure compliance.
The NPS is also set to look at crypto-assets, instant payments, and what new data needs to be collected on the payments landscape. The public consultation will end on February 14.
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