Use of Cash in Jersey (P.48/2026): comments

COMMENTS

The Council of Ministers support part (b) of the proposition asking for a policy paper on the long-term plans for access to cash and cash usage in the Island.

Ministers firmly accept that cash is important and agree that Islanders should not be excluded  because  they  do  not  have  access  to  electronic  payment  mechanisms. Fundamentally,  Ministers  support  the  continued  use  of  cash  for  business  and individuals.

In the meantime, the Council of Ministers maintains its view that part (a) of the proposition imposing new obligations on businesses by January 2028 should be rejected.

Imposing the legal obligation to accept cash will increase the costs of trading, risks increasing prices, and may mean that some goods and services are not as available due to increased barriers to businesses starting up and operating, especially small, mobile, or pop-up businesses.

The Common Strategic Policy 2024-26 prioritises removing barriers to business to support our economy. Cost of living issues remain pressing, and geopolitical events means that this pressure may increase. Now is not the time to remove choice for businesses and introduce new costs into the economy. A policy review therefore has merit to carefully weigh the issues and consider solutions.

Policy Work

This policy work will be undertaken over the next few months, ready later this year for the new government to consider. It will embed a clear commitment to continue to ensure cash is available for all who choose to use it, and consider matters such as:

• Where  the  ability  to  use  cash  is  most important  -  for example,  essential purchases, or where choice of retailer is restricted.

• Where the use of cash can impose more significant costs – for example, high transaction volume/lower product price business, small businesses with limited margins, mobile or pop-up businesses, etc.

• How  any  obligations  could  practically  be  regulated  and  any  exemptions administered.

• Developments in digital technology, such as reverse ATMs which convert cash into pre-paid debit cards, and other options to mitigate digital exclusion for those with limited access to electronic payment mechanisms or with concerns about anonymity.

• The barriers businesses feel are currently in place when choosing whether to accept cash payments and any solutions that reduce those barriers.  

• Discussions with banking institutions.

The work of the Economic and International Affairs Scrutiny Panel and the numerous submissions to its review will be helpful.

Costs on Businesses

There are practical costs associated with cash payment options - such as the need to manage a till, pay a member of staff to count cash each day, to keep it secure, to bank it, and to reconcile cash accounts and floats. Managing cash can be very ineffective from a labour perspective.

These considerations having been set out by several businesses, including the Regional Director of LibertyBus during his submission to the EIA Panel's Acceptance of Cash Payments Review, stating that the costs associated with accepting cash amounted to £65,000 each year and meant that the company took just 72 pence from every £1 spent in cash. This is a sizable cost of doing business. As with any business, such costs must be met somehow – either by reducing costs elsewhere or by raising prices.

Businesses likewise make decisions as to whether to accept certain credit cards based on the merchant charges applied. For example, several businesses chose not to accept certain card providers due to the higher processing fees. Businesses therefore make decisions on payment methods based on a range of factors.

Use of Cash

In the meantime, there has been a general consumer trend away from the use of cash in recent years, as the convenience and flexibility of card, and particularly contactless, payments have risen.

However, whilst reporting clearly identifies a decline in cash use, there is evidence that this will stabilise at a durable baseline reflective of a segment of the population which continues to use cash for their day-to-day spending.

In addition, although there is a clear trend towards lower use of cash by the public, demand for cash from local banks, as driven by their customers, remains robust, with flows of Jersey notes to and from Treasury exceeding £70m over 2025.

The Government also has no plans to cease supplying Jersey notes to banks, which can be done at no net cost to the public, and holds significant stocks of notes to continue to facilitate use of cash in the Island for the foreseeable future.

Access to cash in Jersey is also good - evidence does not indicate that this is a significant issue that warrants legislative intervention. The Government does, and will continue to, ensure that cash is readily available for those who choose to use it. As demonstrated by LINKs review submitted to the Economic and International Affairs Scrutiny Panel, ATM coverage remains satisfactory, and cash withdrawal points are widely distributed across the Island.

Ministers are also concerned that legislating for the free provision of cash services by banks goes against the principles of allowing businesses to operate and charge for services as they see fit. This could also pose a risk to the wider availability and cost of commercial banking services for the Island.

Conclusion

Ministers are concerned about imposing regulatory burdens, whether it is a necessary Page - 3

P.48/2026 Com.(2)

response to the issues, and the costs on businesses and the impact on prices - as well as being mindful of the importance of avoiding digital exclusion and the importance of cash to many in our community.

The Council of Ministers therefore, on reflection, consider that adoption of part (b) is the most appropriate and reasonable way to proceed, weighing all the issues and potential solutions, and ask Members to reject part (a) pending the completion of this work.

Statement under Standing Order 37A [Presentation of comment relating to a proposition]

These  comments  were  submitted  to  the  States  Greffe  after  the  noon 20th March deadline, as set out in Standing Order 37A, due to multiple work commitments in preparation for the Assembly sitting.