UK Finance has welcomed an amendment to the Financial Services Bill which will allow cashback without purchases.

The post-Brexit legislation will give corner shops, pubs, and cafes permission to offer cashback without customers needing to buy something first

Under EU law, companies would need to be authorised with the Financial Conduct Authority to do so.

The organisation, which represents nearly 300 companies across the financial services industry, said that the amendment would be particularly beneficial to those living in rural areas.

It said that the new law would help bolster the sector’s aim to ensure access to cash continues.

“Cashback without purchase will allow retailers to enable consumers to access cash at a time and place that is convenient for them and is a welcome development, particularly for those in rural communities,” said David Postings, chief executive, UK Finance. “This new legislation will complement the industry’s existing work to maintain access to cash, including the recently launched community access to cash pilots.”

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