Róisín Shortall (Dublin North West, Social Democrats) | Oireachtas source

I very much welcome this Bill which seeks to ensure that everyone, regardless of where they live, has a reasonable level of access to cash. This legislation was proposed by the retail banking review in 2022. We in the Social Democrats fully support the implementation of this recommendation. There is no doubt that cash usage has declined rapidly in the last decade, particularly during the pandemic. We now live in a country that has a very sophisticated electronic payment system and therefore a declining need for cash. This change is borne out by Central Bank data. In July, card payments amounted to €8.92 billion, €2.3 billion of which were contactless payments. The use of mobile wallets such as Apple Pay and Google Pay has also significantly increased. Between March 2023 and March 2024, they accounted for half of the 24 billion contactless payments. Notwithstanding this very significant change to the cash cycle, there is still an appetite and indeed a real need for physical money. There is no doubt that there has been a downward trend in ATM transactions, from €18.5 billion in 2015 to €13.5 billion in 2022. While the overall value has declined, the average per-transaction value has increased from just over €120 in 2015 to over €150 in 2022. Clearly, people are using ATMs a lot less but when they do use them, they are withdrawing greater amounts of money. Branch closures, the removal of cash services and a reduced ATM network have greatly contributed to this behavioural change. While most people may have moved to electronic payment methods by choice, many others have been forced to or, worse, many have been left behind.

According to the retail banking review, following the closure of all Ulster Bank branches the entire branch network reduced from 617 to 438. Of those remaining bank branches, 21% have no staffed cash counter.

Regarding our ATM network, Ireland had the third highest decrease in ATMs in the EU between 2017 and 2020, after the Netherlands and Belgium. However, it is worth noting that the reduction in ATMs in both the Netherlands and Belgium happened under a structured framework by the state. The same cannot be said about Ireland, where the rapid decrease in ATMs was as a result of decisions that were taken by the banks in their own interest.

As a result of successive governments' hands-off approach to banking policy, the pillar banks were also given free rein to sell their off-site ATM network. In 2018 Ulster Bank sold all its offshore - I apologise; that was a Freudian slip - its off-site ATM network to Euronet. AIB and Bank of Ireland did the same in 2020, selling their entire off-site network to Brink's and Euronet. While the main banks still operate ATMs that are situated on their premises, approximately 75% of all ATM locations are now controlled by independent ATM deployers. They also own approximately 60%. That is a major transformation of the ATM network in a very short time. It is less than a decade since all ATMs were operated by traditional banks. These independent ATM deployers are now significant players in the cash cycle, yet they remain completely unregulated by the Central Bank. I welcome the provisions of the Bill that will finally ensure that these independent ATM deployers and cash-in-transit providers must be registered with the Central Bank. It will be a criminal offence not to do so and it is not before time that that provision is being made.

I also welcome section 32, which introduces prescribed requirements and service standards for ATM operators. The Bill also places additional responsibilities on designated entities, that is, the three main retail banks. It will be up to these credit institutions to address local deficiencies in cash infrastructure, which is the right approach. Some concerns have been raised about placing the entire burden on these banks and not the independent operators which run the majority of the ATMs now. However, this Bill is about enabling us all to access our own money in cash and that money is with the banks, not with independent operators.

We also need to force the pillar banks' hands so that they increase their ATM network. The current level of outsourcing to independent operators is particularly bad for rural communities and for SMEs, which have been hardest hit by branch closures. The IAD business model depends on having ATMs in areas of high footfall. They have no regard for the public good, it would seem. Cash services, even those that are loss-making, are vital for local communities and this consideration must trump commercial concerns.

While I accept that the increased use of cashless payments has made life easier for most people, a clear strategy to manage this transformation is needed. In the absence of such a plan, too many people will undoubtedly be left behind. It is over a decade since the last national payment strategy was published and changes to the cash cycle have far outpaced that plan. We now find ourselves at a crossroads and pre-emptive action is required to ensure that a cashless society does not become a runaway train. I accept that a new payment strategy is on the way and I would appreciate if the Minister could provide an update on that.

Some areas, while related, fall outside the scope of this Bill and they will need to be addressed, in particular the use and acceptance of cash, which was repeatedly raised by stakeholders during pre-legislative scrutiny. People cannot attend a GAA match, renew a driver's licence or, increasingly, even buy a coffee without a debit card. Access to cash is of very little use if an increasing number of businesses, organisations and public bodies refuse to take it. Ultimately this is about inclusion.

We cannot continue down the path towards a cashless society as some of the most vulnerable would undoubtedly be excluded by such a rush. This includes some older people, some on low incomes and those who lack the digital or financial literacy needed to manage electronic payments. Organisations such as Age Action have been warning about the threat of an increasingly cashless society for years now, long before the number of bank branches receded or Covid accelerated the use of electronic payment methods. In 2018 Age Action said that an entire generation of older people were being left behind, with 50% of people aged between 65 and 74 never having been online. This level of exclusion did not improve in the following years. As of 2021, 65% of over-65s experienced digital exclusion, meaning they could not access online or contactless financial services.

We must not lose sight of the fact that cash is still an essential part of everyday life for many people. It is not a choice or a habit; it is a need. I do not believe this Government was trying to move us towards a totally cashless society by design but, without a very clear plan, it was stumbling into one. I welcome that the Government has changed course, but there is more to be done. Cash must not only be available, it must also be accepted. A clear and structured legislative framework is needed to manage this payment evolution and stop the creep towards a totally cashless society.

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